Aditya Birla Sun Life Mutual Fund Introduces Conglomerate Fund for Equity Investors
Aditya Birla Sun Life Mutual Fund has launched the Aditya Birla Sun Life Conglomerate Fund, an open-ended equity scheme following the conglomerate theme. The fund is devised to provide investors with opportunities to achieve long-term capital appreciation through investments in equity and related instruments of companies, which are in line with this theme.
NFO Details
The New Fund Offer (NFO) will open on December 5, 2024, and will remain open for subscription till December 19, 2024. The scheme will be open for continuous sale and repurchase within five business days after allotment after the NFO period.
Investment Objective and Benchmark
The scheme aims at giving long-term capital appreciation by providing investment in equity and equity-related securities of conglomerate-themed companies. It is benchmarked against the BSE Select Business Groups Index and will be actively managed.
Management and Investment Strategy
The fund will be managed by experienced portfolio managers, who will employ an active investment strategy. The scheme aims to generate long-term returns by focusing on companies from India’s leading conglomerates, selected based on market capitalization.
Asset Allocation
The fund’s asset allocation strategy includes:
- 80-100% in equity and equity-related instruments of conglomerate-themed companies.
- 0-20% in the equity and related instruments of the companies not forming part of this theme.
- 0-20% in the debt and money market instruments.
- 0-10% in units issued by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
Exit Load and Minimum Investment
Redemption or switch-out made within 90 days from the date of allotment shall incur an exit load of 0.50% of the applicable NAV. If it’s beyond 90 days, then there is no exit load.
The minimum required investment in a lump sum or SIP is Rs. 100, and further multiples could be invested in Re 1. Partial redemptions are allowed; but if the remaining balance falls below Re 1 for a folio, then a transaction would be considered for full redemption.
Suitability
This fund is appropriate for investors who are looking for long-term capital appreciation through investing in equity and equity-related instruments of conglomerate-themed companies. The scheme has the potential to offer diversification and growth by focusing on companies from India’s best conglomerates.
With conglomerate theme companies and flexibility on asset allocation, the fund opens up a novel avenue of investment. The addition of REIT, InvIT, and debt instruments covers diverse investor preferences while targeting long-term financial goals.
