PremiumMulti Asset Allocation Fund, an open-ended scheme investing in equity, debt, and commodities, has been launched by Aditya Birla Sun Life AMC Limited, a subsidiary of Aditya Birla Capital Limited and investment manager to Aditya Birla Sun Life Mutual Fund. The fund attempt to balance risk and reward by diversifying its investments across a variety of asset classes. The NFO will remain open from 11th January 2023 to 25th January 2023. The fund's equity portion can invest across sectors and themes and will use a flexi cap approach with a large cap bias. The accrual strategy will be used to a considerable extent in a fixed-income portfolio.
The investment approach of the fund is towards equity (65-80%), fixed income (10-25%), and commodities (10-25%). The equity portion of the fund has the potential to create wealth in the long term, fixed income securities seek to bring stability to the portfolio, whereas Commodities securities act as a hedge against uncertainty. Asset allocation strategies are beneficial to investors because they have lower volatility, which may increase their ability to stick with a strategy and produce higher risk-adjusted returns over the long run, enhancing their potential to build wealth. Investors can allocate their assets in a diversified way to generate diversity since different asset classes react differently throughout various economic cycles and time periods. The fund can contribute to lowering portfolio risk by delivering returns that vary considerably across asset classes having lower correlation among asset classes.
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."
Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc. jointly own and provide financial support for the 1994-founded Aditya Birla Sun Life AMC Limited (ABSLAMC). With a pan-India presence in more than 280 locations and an AUM of more than Rs. 2,938 billion for the quarter ended September 30, 2022, ABSLAMC is one of the leading asset managers in India, managing portfolios of almost 8.1 million customers. The Aditya Birla Group's financial services companies are held under the umbrella of Aditya Birla Capital Limited (ABCL).