Aditya Birla Sun Life Mutual Fund has launched two new fund offers (NFOs) of Aditya Birla Sun Life Fixed Term Plans. The two plans are of 91 days and 1,110 days, respectively.
Both the plans are closed-end. The NFO launch and closure date of both funds are March 23, 2023.
There is no entry and exit load. The minimum subscription amount is Rs. 1,000 and in multiples of Rs. 10 for both the schemes.
Aditya Birla Sun Life Mutual Fund announced in a scheme information document that both schemes will seek to generate income by investing in a portfolio of fixed income securities maturing on or before the tenure of the scheme.
The Aditya Birla Sun Life Fixed Term Plan – Series UI (91 days) will follow the Crisil Liquid Fund Index as its benchmark. The benchmark index for the Aditya Birla Sun Life Fixed Term Plan – Series UJ (1,110 Days) will be the Crisil Medium Term Debt Index.
The Aditya Birla Sun Life Fixed Term Plan – Series UI (91 days) will have a tenure of 91 days from and including the date of allotment. The net asset value (NAV of the scheme will be announced on every business day.
There will be no option of redemption or repurchase prior to maturity of the scheme. There will be both regular and direct plans with both growth and dividend options.
According to Aditya Birla Sun Life Mutual Fund, the closed-end debt scheme will offer relatively low interest rate risk and moderate credit risk. The scheme is suitable for investors who are seeking income with capital growth over short term and want to invest in debt and money market securities maturing on or before the tenure of the scheme. The risk has been defined as low to moderate.
The Aditya Birla Sun Life Fixed Term Plan – Series UJ (1,110 Days), on the other hand, will have a tenure of 1,110 days.
According to Aditya Birla Sun Life Mutual fund, the closed-end debt scheme will offer a relatively high interest rate risk and relatively low credit risk, and will be suitable for investors who are seeking income with capital growth over the long term and want to invest in debt and money market securities maturing on or before the closure of the scheme.
This scheme also has both regular and direct plans with growth and dividend options.
