Publish Date:
ABSL Mutual Fund has Introduced a new scheme – Aditya Birla Sun Life Multi- Index Fund Of Funds
It is an open-ended fund of funds scheme investing in Exchange Traded Funds and Index Funds.
Accordingly, the primary objective of the Scheme is to generate capital appreciation by investing in passively managed instruments such as ETFs and Index Funds of equity and equity related instruments (domestic index funds & ETFs as well as overseas ETFs), fixed income securities, Gold / Silver.
However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.
Under normal circumstances, Aditya Birla Sun Life Multi- Index Fund of Fund will hold an allocation of 95% to 100% of its assets in Units of ETFs and Index Funds as stated: an allocation of 20% to 80% in Equity ETFs & Index Funds, 0% to 20% in Overseas equity ETFs, 10% to 60% in Debt ETFs & Index Funds, 0% to 20% in Gold/ Silver ETFs and 0% to 5% in Debt & Money Market Instruments, including Tri Party Repo^, G-Secs, Cash and Cash equivalent.
As per the Scheme Information Document, Aditya Birla Sun Life Multi- Index Fund of Funds will be following an investment strategy which is focussed on a combination of overall portfolio asset allocation & selection of the underlying units of ETFs and Index funds. The exposure to underlying mutual fund schemes shall include domestic Index Funds & ETFs as well as overseas ETFs for Equity, Fixed Income and commodities (like Gold & Silver).
The fund manager will focus on dynamic asset allocation of the overall portfolio as part of risk mitigation as well as gaining from the evolving global & Indian economic cycles. The asset allocation changes will determine the portfolio exposure to the 4 key asset classes Domestic Equity, International Equity, Fixed Income & Commodities (Gold & Silver).
In these, Domestic & International Equity are focused on providing industry diversification & higher growth to the portfolio performance overtime, while focus of debt & commodity (gold & silver) allocation is to provide stability & hedge to volatility from macroeconomic & micro market disturbances.
Aditya Birla Sun Life Multi- Index Fund of Fund’s performance will be benchmarked against 50% Nifty 500 TRI + 30% CRISIL Low Duration Debt Index + 10% MSCI AC World Index + 5% Domestic Price of Physical Gold + 5% Price of silver (based on LBMA Silver daily spot fixing price).
The scheme will be managed by Mr Vinod Bhatt
The NFO opens for subscription on September 26, 2022 and closes on October 10, 2022. The scheme will reopen for continuous sale and repurchase within 5 Business Days from the date of allotment.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 100/- and in multiples of any amount thereafter.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.
[Read: Is It Worth Investing in Aditya Birla Sun Life Multi-Index Fund of Funds?]