Aditya Birla Sun Life AMC launches India's first BSE Total Market Index Fund, ETF

Aditya Birla Sun Life AMC on Tuesday launched the Aditya Birla Sun Life BSE Total Market Index Fund and Aditya Birla Sun Life BSE Total Market ETF.

The new fund offering will start on September 30 and end on October 14, the AMC said in a release.

The two offerings will track the BSE Total Market Index, providing investors with exposure to approximately 93 per cent of India's total market capitalisation across large-, mid-, small- and micro-cap segments, the release said.

The index comprises stocks representing 98 per cent of the market capitalisation of the BSE AllCap Index, subject to a minimum of 1,000 stocks with no upper cap on the number of constituents, thereby giving investors access to a broad universe of companies through a single investment proposition, the release added.

"A distinctive feature of the index is its adaptive constituent framework. Unlike traditional indices that are restricted by a fixed number of stocks, the BSE Total Market Index is designed to expand alongside India's evolving capital markets, enabling investors to participate in new growth opportunities as they emerge," said Hemen Bhatia, head- passives, Aditya Birla Sun Life AMC.

The BSE Total Market Index is designed to evolve with India's equity market and is rebalanced semi-annually in June and December, with constituent weights determined based on free-float-adjusted market capitalisation, the company said.

It provides diversification across market segments, with 56 per cent exposure to large caps, 20 per cent to mid-caps, 10 per cent to small caps and 7 per cent to micro caps, while spanning 22 sectors, including financial services, capital goods, healthcare, automobiles, oil & gas, information technology, FMCG, consumer services, metals & mining, telecommunications and power, according to the AMC.