Aditya Birla Sun Life Mutual Fund, a subsidiary of Aditya Birla Capital introduces two new index funds that mainly focuses on the Nifty midcap and smallcap indices.

According to the company’s statement, while the Nifty midcap 150 index funds is an open-ended scheme tracking Nifty midcap 150 TR index, the Nifty smallcap 50 index fund is an open-ended scheme tracking Nifty smallcap 50 TR index.

Both the schemes are open and is expected to close on March 26, as per to the fund house.

Commenting on the new index funds, A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC says, “Indian economy is at an inflection point and the country is witnessing a sharp economic recovery as evident in most high frequency data points. During periods of economic recovery the market becomes more broad based and makes it a favourable period for mid and small caps to outperform. Additionally, the cyclical recovery we are witnessing also sets a stage for mid and small caps to do well as they have higher exposure to the domestic economy. While the macro economic factors seem to be in place, Government’s reinvigorated push to Manufacturing and Infra growth through policies like Make in India; Aatmanirbhar Bharat; PLI Scheme etc. is further strengthening the case for domestic oriented Midcap & SmallCap companies to do well”.

He continues, “The two new index funds by us provide an opportunity to investors to participate in the broader market opportunities. For investors, who are seeking allocation to higher-growth Midcap and Small cap segments, index funds in mid and small cap spaces can provide a lower-risk alternative with the advantage of lower cost.”

However, the minimum application amount for these funds is Rs.500, and in multiples of Re.1 thereafter, during the New Fund Offer period. The new fund offer period of the two index funds would be till March 26, 2021.