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.
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.
- 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
|Instruments||Minimum % of total assets (Indicative)||Maximum % of total assets (Indicative)||Risk Profile|
|Equity and Equity-related securities of Large, Mid, and Small cap companies||80%||100%||High|
|Debt securities and Money Market Instruments||0%||5%||Low to Moderate|
About the Scheme
|Name of the fund||Aditya Birla Sun Life Multi-Cap Fund NFO|
|Fund launched by||Aditya Birla Sun Life Mutual Fund|
|Asset Management Company||Aditya Birla Sun Life AMC Limited|
|Type of scheme||An open-ended scheme investing equity securities of large, mid, and small cap companies|
|Investment Objective||The 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.|
|Benchmark||Nifty 500 Multicap 50:25:25 TRI|
|Entry Load||Not Applicable|
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.
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, & SWP||Available|
|Fund Managers||Mr. Mahesh Patil & Mr. Dhaval Shah (for equity investments), Mr. Harshil Suvarnkar (for debt investments), and Mr. Vinod Bhat (for overseas investments)|
|Type||Minimum Installments||Minimum Amount|
|Weekly SIP||6||₹500 & in multiples of ₹1 thereafter|
|Monthly SIP||6||₹500 & in multiples of ₹1 thereafter|