Aditya Birla Sun Life Mutual Fund has launched Aditya Birla Sun Life Multi-Cap Fund. The NFO opens on Apr 19, 2021 and closes on May 3, 2021. It is an open ended equity scheme investing across large-cap, mid-cap and small-cap stocks.
Talking about the launch, A. Balasubramanian, MD & CEO, Aditya Birla Sun Life MF said, "Large-caps are proven quality compounders and must-haves for any portfolio but from a long term perspective, a healthy exposure to mid and small cap segment is proven to be growth enhancing and rewarding."
He also pointed out that fiscal and monetary policy, low interest rate, surplus liquidity, conducive policies complementing Production Linked Incentives (PLI), Aatmanirbhar Bharat, Development Finance Institution (DFI), labour and industrial reforms, unprecedented digital adoption can fuel all the market segments, particularly the mid and small cap sectors.
Here are some of the key features of the fund:
- The fund will handpick 50-60 companies from a universe of 400 companies. Further, a bottom-up approach will build a sound portfolio with higher return potential
- It strives to blend the stability of large-cap and the high growth potential of mid & small-cap in one portfolio. The fund will invest 25-45% in large-cap and 25-35% each in mid and small cap companies. Additionally, an active rebalancing strategy will also provide opportunities to invest in fast growing sectors and companies
- A portion may be invested in distinct avenues, emerging sectors and businesses
- Investors can register for a SIP with a modest contribution of Rs.500
Equity typically aids wealth creation, especially in a low interest rate environment where traditional savings instruments are expected to fetch sub-par returns. Within this, a multi-cap approach enables diversification by way of allocation to all three market caps with one fund. Risk aware equity investors looking for a one stop solution of an aggressive equity fund for long term with an investment horizon of atleast five years can opt for this fund. It is an apt investment vehicle for SIP investments to achieve market cap based diversified allocation.
