Quick Look At - Aditya Birla Sun Life - NFO Multi-cap Fund


In today’s post we’re going to take a quick look at a new fund offering called Aditya Birla Sun Life Multi-cap fund, along with a summary of its investment philosophy and key benefits. A multi-cap fund is an equity-oriented mutual fund scheme that invests across market capitalizations. What’s important to note here is that markets regulator Securities and Exchange Board of India (SEBI) on September 11 announced changes to the constitution of multi-cap funds. According to the new constitution, these funds are now required to invest a minimum of 75 percent of their total assets in equity and equity-related instruments, as well as a minimum of 25 percent each in large, mid, and small-cap stocks.


In reference to this update Mahesh Patil, Chief Investment Officer, Aditya Birla Sun Life AMC, was quoted stating: “The economy is expected to grow at a much faster rate in the next three to five years. Many small-cap companies are expected to report healthy earnings growth, making them good investments for the medium term.” Similarly, A Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC, said that while large-caps are proven quality compounders and must-haves for any portfolio, from a long-term perspective, it’s the mid and small-cap segment that is proving to be rewarding.


This fund will be an open-ended equity scheme investing across large-cap, mid-cap & small-cap stocks with a minimum of 25% portfolio allocation each to large, mid, and small caps. The NFO is open from April 19, 2021, till May 3, 2021.


Investment Profile:

  • The scheme will invest 25-45% in Large-cap and a minimum of 25-35% each in Mid and Small-cap segments

  • The scheme will follow a bottom-up approach of stock selection


Key Benefits:


  • Combines the stability of large-caps and the high growth potential of mid & small-caps in one portfolio. 

  • Disciplined market cap allocation and active rebalancing provide the opportunity to invest in fast-growing sectors/companies across the spectrum. 

  • A bottom-up approach helps build a portfolio of high conviction ideas to enhance return potential. 

  • Ideal portfolio to play high growth cycle


In conclusion, India is expected to be among the top 3 economic powers within the next 15 years. An open-ended fund that has no restrictions on sector or market cap is definitely a lucrative investment options for those who want to grow with India. That being said, however, whether this particular fund is a good investment option for you is completely subjective and depends largely on your existing investment portfolio. For more information on what funds best suit your age and risk profile, feel free to contact us.


 

Comments

  1. UnknownApril 26, 2022 at 3:21 AM

    This information is very helpful. Thank You for sharing such valuable information with us. Account Opening Online

    ReplyDelete

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