Aditya Birla Sun Life Mutual Fund launches Multi Asset Allocation Fund
Mumbai, January 18, 2023: Aditya Birla Sun Life AMC Limited, a subsidiary of Aditya Birla Capital Limited, an investment manager to Aditya Birla Sun Life Mutual Fund, has announced the launch of Multi Asset Allocation Fund, an open-ended scheme investing in equity, debt and commodities. The fund will focus on diversifying its investments across a variety of asset classes in an attempt to balance risk and reward by allocating optimal weights to the assets. The NFO will remain open from 11th January, 2023 to 25th January, 2023.
Why is asset allocation important-Provides diversity by investing across various asset classes . Range of returns varies widely across asset classes . Different asset classes perform differently through various economic phases & time periods. Lower corelation among asset classes can help reduce the risk of a portfolio.
How does asset allocation add value to investors-Lower volatility – may enhance investor’s ability to stay committed. Wealth creation –ability to generate higher risk adjusted return in the long term.
Key Highlights Of Aditya Birla Sun Life Multi Asset Allocation Fund-Equity portion of Portfolio will follow Flexi Cap Approach with Large Cap bias and caninvest across Sectors / Themes. Fixed income portfolio will largely use Accrual strategy. Investment approach – equity (65-80%), fixed income (10-25%), commodities (10-25%). Equity – potential to create wealth in the long term . Fixed income – seeks to bring stability to the portfolio. Commodities – acts as hedge against uncertainty.
Commenting on the launch, Mr. A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC Limited said, “The Aditya Birla Sun Life Multi Asset Allocation 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. 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.”