MumbaiIf you are interested in the stock market (Share Bazar) Infosys, must be aware of TCS, Tech Mahindra etc. such as IT companies (IT Companies). The news of good returns of the shares of these companies keeps getting published. Seeing the potential of this sector, Aditya Birla Sunlife Mutual Fund has launched a new fund offer (NFO) named Nifty IT ETF. It is an open ended exchange traded fund. It will track Nifty IT TRI (Total Return Index). The fund has opened on October 20 and will close on October 28.
10 companies in the IT sectorNifty IT Index uses the method of free float market capitalization. This index acts as a benchmark for the Indian IT sector. It consists of 10 IT companies. These are all companies listed on the National Stock Exchange (NSE). It is primarily a large cap index which rebalances on a quarterly basis.
In this, no stock exceeds 33%. At the time of rebalancing the weightage of top 3 stocks together does not exceed 62%. Nifty IT Index has performed well in all time. Aditya Birla Sunlife Mutual Fund MD and CEO A. Balasubramanian says that over the years, India has established itself as a preferred destination for IT and Business Process Management services. In India, this sector has contributed 44% in foreign direct investment (FDI).