Aditya Birla Sun Life AMC Limited has announced the launch of a Multi Asset Allocation Fund, an open-ended scheme investing in equity, debt, and commodities.
It said the fund would focus on diversifying its investments across a variety of asset classes by giving optimal weights to the assets to balance risk and reward.
The new fund offer NFO runs from January 11 to 25, 2023.
Detailing the fund, A. Balasubramanian, managing director and chief executive officer (CEO) of Aditya Birla Sun Life AMC Ltd., in a press release on Monday, said, “The fund gives investors access to a well-diversified offering across asset classes. It is an excellent investment option for both novice and seasoned investors, as it eliminates the stress of investing, tracking, and maintaining multiple investment strategies.
He added, “The fund attempts to invest in a diversified portfolio of high-quality debt and money market securities to generate income with relatively minimal credit risk.”
The fund house said it will follow the Flexi cap approach for its equity portion of the portfolio. Hence, it can invest across sectors and themes. The fixed income part will largely use the accrual strategy.
In addition, it said it will deploy 65-80 per cent of its assets in equities, 10-25 per cent in fixed income, and 10-25 per cent in commodities as part of its investment approach.
The strategy is to create wealth in the long term, while the fixed income component is aimed at bringing stability to the portfolio, the commodities part is to act as a hedge against market uncertainty.
Typically, a Flexi-cap approach provides the fund manager with greater choices and asset diversification possibilities for investments in the portfolio, meaning the fund house adopts a strategy that does not follow a predetermined market capitalisation framework for investing.
Highlights of the Scheme
• Invests across various asset classes, providing diversity.
• The range of returns varies widely across asset classes
• Diverse asset classes perform differently through various economic phases and time periods.
• Helps reduce portfolio risks due to lower co-relation among various asset classes.
• Lower volatility may boost investors’ ability to stay committed.
• Ability to generate higher risk-adjusted returns in the long term.
