Publish Date:
Aditya Birla Sun Life Mutual Fund has launched an open-ended equity scheme – Aditya Birla Sun Life Multi-Cap Fund.
The scheme will predominantly invest across large cap, mid cap & small cap stocks.
The investment objective of Aditya Birla Sun Life Multi-Cap Fund is to achieve long term growth of capital, at commensurate levels of risk through a diversified research based investment in Large, Mid & Small cap companies. The Scheme does not guarantee/indicate any returns. There can be no assurance that the schemes’ objectives will be achieved.
Under normal circumstances, 80% to 100% of the funds portfolio will be invested in Equity & Equity related instruments across large, mid and small cap companies. The Scheme will invest a minimum of 25% of total assets each in Large, Mid and Small Cap stocks. Whereas upto 20% of its assets can be invested in Debt & Money Market Instruments. The Scheme may seek to invest upto 20% of its net assets in foreign securities.
The investment strategy of Aditya Birla Sun Life Multi-Cap Fund as mentioned in the Scheme Information Document (SID) is as follows,
Being in the Multi Cap category, Aditya Birla Sun Life Multi-Cap Fund has flexibility in terms of allocation across market cap. To ensure diversification of investment across market caps, the scheme will invest a minimum of 25% each in Large, Mid and Small Cap stocks, with the balance 25% flexibility to the fund manager.
The Scheme would adopt top-down and bottom-up approach of investing and will aim at being diversified across various industries and / or sectors and/ or market capitalization. The investment emphasis of the scheme would be on identifying companies with sound corporate managements and prospects of good future growth. Essentially, the focus would be on stocks driven by long-term fundamentals. However, short term opportunities would also be seized, provided underlying values supports these opportunities. A portion of the scheme will also be invested in IPOs, emerging sectors, concept stocks and other primary market offerings that meet the investment criteria set by the fund house.
Aditya Birla Sun Life Multi-Cap Fund would invest a substantial portion of its investible assets (80% - 100%) in equity and equity related instruments across large, mid and small cap companies. Pending investment of the scheme may be invested in debt & money market instruments and other liquid instruments or both. The scheme may have prudent exposure to Futures & Options (F&O) to capture opportunities arising out of market imperfection and to hedge the portfolio, whenever necessary.
Aditya Birla Sun Life Multi-Cap Fund’s performance will be benchmarked against Nifty 500 Multicap 50:25:25 TRI (Total Return Index). The Nifty 500 Multicap 50:25:25 TRI is suitable for benchmarking of Multi Cap funds. Moreover, it is suitably designed to have a balanced exposure to large, mid & small cap stocks of the broader Nifty 500 index.
The fund will be managed by Mr Mahesh Patil (Equity), Mr Dhaval Shah (Equity), Mr Harshil Suvarnkar (Debt) and Mr Vinod Bhat (Overseas Investments).
The NFO opens for subscription on April 19, 2021, and closes on May 03, 2021. The scheme will reopen for continuous sale and repurchase within 5 business days from date of allotment.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 500 and in multiples of Re 1 thereafter.
The fund offers Regular Plan and Direct Plan having Growth Option and Payout of Income Distribution cum Capital Withdrawal Option (Re-investment and Pay-out facility).