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Aditya Birla Sun Life Multi-Cap Fund NFO

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Gaurav Seth
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Aditya Birla Sun Life Multi-Cap Fund NFO

Aditya Birla Sun Life Mutual Fund has announced the launch of Aditya Birla Sun Life Multi-Cap Fund. The scheme would be investing its assets in equity and equity-related securities of companies across market capitalizations along with some exposure in debt & money market instruments.

The New Fund Offer (NFO) starts from 19th April 2021 and will end on 03rd May 2021. The fund will reopen for continuous sale and repurchase within 5 business days of allotment.

Investment Objective 

The investment objective of the scheme is to provide long-term capital growth by investing its assets through diversified research-based investments in Large-cap, Mid-cap, and Small-cap companies.

Features

  • The fund will be investing a minimum of 80% of its assets in the equity and equity-related securities of every market capitalization.
  • The scheme will allocate 25%-45% of its assets in large-cap stocks, 25%-35% in mid-cap stocks, and 25%-35% in small-cap stocks.
  • The fund may invest a portion of assets in special opportunities, emerging businesses, and sectors.
  • The portfolio will have a total of 50-60 stocks out of which 15-20 stocks will be of large-cap, mid-cap, and small-cap each.
  • Stocks will be selected on the basis of Corporate Governance & Management Quality, Competitive Advantage, Size of the Opportunity, Sustainable Growth Potential, and Margin of Safety.

Why invest in Aditya Birla Sun Life Multi-Cap Fund?

  • The funds combine the portfolio of stable large-cap companies and high growth mid & small-cap companies.
  • Fund will have disciplined market cap allocation and active rebalancing periodically that provides an opportunity to have exposures to fast-growing companies & sectors.
  • The fund follows a bottom-up approach to build a portfolio to increase return potential.
  • It has an ideal portfolio to play in the high growth cycle.

Portfolio construction process:

Step-1 Invests In: Companies with Strong management & corporate governance which have a dominant business with a wide moat. The companies which have sustainable high growth potential.

Step-2 Avoid: The fund will avoid companies with weak corporate governance practices and fundamentally weak companies.

Step-3 Resultant Portfolio: The fund will result in a portfolio of high-quality companies that have sustainable long-term growth potential.

Who Should Invest?

This scheme is suitable for investors who are -

  • Interested in long-term capital growth.
  • Investors who want the one-stop solution for long-term aggressive equity funds.
  • Interested in investments in a diversified portfolio with companies of every market capitalization.
  • Recommended for risk-aware investors with an investment horizon of 5 years & above.

Asset Allocation Pattern

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
Equity and Equity-related securities of Large, Mid, and Small cap companies80%100%High 
Debt securities and Money Market Instruments0%5%Low to Moderate

About the Scheme

Name of the fundAditya Birla Sun Life Multi-Cap Fund NFO
Fund launched byAditya Birla Sun Life Mutual Fund 
Asset Management CompanyAditya Birla Sun Life AMC Limited
Type of schemeAn open-ended scheme investing equity securities of large, mid, and small cap companies
Investment ObjectiveThe investment objective of the scheme is to generate long-term capital growth by investing its assets through diversified investments in Large, Mid, and Small cap companies.
BenchmarkNifty 500 Multicap 50:25:25 TRI
Entry LoadNot Applicable
Exit Load

1% of applicable NAV - If units are redeemed or switched out within 365 days.

Nil - If units are redeemed or switched out after 365 days.

Taxation

Taxed as Equity

-If units are redeemed within 12 months, gains are taxed as short term capital gain tax @15%

-If units are sold after 12 months, gains are taxed as long term capital gain tax @10% on the gains exceeding ₹ 1 lakh in a financial year

Minimum Application Amount ₹ 500 & in multiples of ₹ 1 thereafter
Minimum Additional Amount₹ 500 & in multiples of ₹ 1 thereafter
STP, & SWPAvailable
Plans Available
  • Regular
  • Direct
Options
  • Growth
  • Dividend Payout
  • Dividend Reinvestment
Fund ManagersMr. Mahesh Patil & Mr. Dhaval Shah (for equity investments), Mr. Harshil Suvarnkar (for debt investments), and Mr. Vinod Bhat (for overseas investments)

SIP Details

Type Minimum InstallmentsMinimum Amount
Weekly SIP₹500 & in multiples of ₹1 thereafter
Monthly SIP₹500 & in multiples of ₹1 thereafter

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