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 can invest 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.”
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