What is Aditya Birla Sun Life Insurance Nifty Alpha 50 Index Fund?
Aditya Birla Sun Life Insurance Nifty Alpha 50 Fund is a market-linked investment fund that replicates the performance of Nifty Alpha 50 index.
The ABSLI Alpha 50 NFO is launching on 16 June 2024 and is available up to 30 June 2024. As an index fund, it typically follows a passive investment strategy, meaning it aims to replicate the performance of its underlying index rather than actively selecting stocks.
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The ABSLI Nifty Alpha 50 Fund includes stocks from the top 300 companies in terms of market capitalization.
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1st – 100th: Large Cap
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101st – 250th: Mid Cap
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251st onwards: Small Cap
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Stocks are selected in the Nifty Alpha 50 Index based on their Alpha scores, with the top 50 scoring stocks chosen.
What is Alpha?
Alpha represents the excess return of an investment compared to a benchmark, typically a market index.
Alpha = Actual Return – Expected Return
Interpretation of Alpha
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Positive Alpha
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Negative Alpha
What is the Nifty Alpha 50 Index?
The Nifty Alpha 50 Index is a stock market index designed to track the performance of 50 Indian companies that have exhibited high alpha over the past year.
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Focus on Alpha: It targets companies with high alpha, which is a measure of performance that goes beyond just stock price movement by comparing returns to a benchmark like the Nifty 50.
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Well-Diversified: The index consists of 50 stocks, offering diversification across different sectors.
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Selection Criteria: While alpha is a primary factor for inclusion, the index also considers factors like liquidity and market capitalization to ensure the investability of the chosen stocks.
| Time Period |
Return Percentage |
| 5 Years |
30.4% |
| 10 Years |
26.8% |
If you had invested Rs. 100 ten years ago, it would now be worth Rs. 985, showing a tenfold increase.
Sector Representation of the Nifty Alpha 50 Index
| Top Sectors |
Weightage of Invested Assets |
| Financial Services |
28.00% |
| Capital Goods |
18.59% |
| Power |
7.94% |
| Healthcare |
6.78% |
| Realty |
6.69% |
| Construction |
6.65% |
| Information Technology |
5.31% |
| Consumer Services |
5.92% |
| Metals & Mining |
4.05% |
| Automobile and Auto Components |
3.60% |
| Fast Moving Consumer Goods |
1.62% |
| Textiles |
0.62% |
| Media, Entertainment & Publication |
0.49% |
[Source: nseindia.com]
*updated as of 13 June 2024.
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