Mumbai: Aditya Birla Sun Life AMC Ltd. (ABSLAMC) today announced the launch of two new factor-based index funds – the Aditya Birla Sun Life BSE 500 Momentum 50 Index Fund and the Aditya Birla Sun Life BSE 500 Quality 50 Index Fund.
The New Fund Offer (NFO) period for both factor-based index funds is open from July 21 to August 4, 2025.
These offerings mark a significant milestone in the fund house’s smart beta product strategy, giving retail investors access to quantitative, rules-based investment approaches that balance returns with risk tolerance.
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The Momentum 50 Index Fund is designed to capture high-growth opportunities by investing in the top 50 high-performing stocks from the BSE 500 index, recalibrated quarterly. This fund is ideal for investors with a higher risk appetite looking to capitalize on market trends and upside momentum.
In contrast, the Quality 50 Index Fund focuses on companies with robust financial health, stable earnings, and strong return on equity. It targets long-term wealth creation by prioritizing low volatility and financial consistency, making it a compelling choice for conservative investors looking for resilience during market downturns and stability during recoveries.
“With these twin fund launches, we aim to bring global-quality, factor-driven equity strategies to Indian investors. These funds are ideal for diversifying core equity portfolios in a dynamic economic environment,” said A Balasubramanian, Managing Director & CEO of Aditya Birla Sun Life AMC Ltd.
“Momentum offers aggressive upside potential, while Quality ensures stability and resilience – together they form a complementary toolkit for long-term investment success.”
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Factor-Based Index Funds: Smart Beta Investment Approach
Both factor-based index funds follow a smart beta investment approach with low-cost structures, no entry load, and minimal exit load, in line with ABSLAMC’s core investment philosophy.
As of June 2025, the Momentum Fund maintains around 70% allocation to mid- and small-cap stocks, while the Quality Fund maintains a more balanced exposure, with around 50% in large-cap and the rest spread across mid- and small-cap companies.
These twin offerings give investors the flexibility to choose strategies aligned with their investment goals, time horizons, and risk profiles – or even combine both funds for broader market exposure.