Monday, Nov 28, 2022
Outlook Money

Aditya Birla Sun Life Mutual Fund Launches Multi-Index Fund Of Funds, NFO Opens Sep 26

Aditya Birla Sun Life Mutual Fund has launched a Multi-Index Fund of Funds focussing on exchange-traded funds (ETFs) and Index Funds.

Aditya Birla Sun Life Mutual Fund has launched an open-ended Multi-Index Fund of Funds, targeting passively managed domestic and overseas equity, debt, gold and silver investment instruments such as exchange-traded funds (ETFs) and Index Funds.

The new fund offer (NFO) is open for subscription from September 26, 2022, to October 10, 2022.

Commenting on the scheme, A. Balasubramanian, managing director & CEO of Aditya Birla Sun Life Asset Management Company (AMC) Limited, said in a press release on Wednesday, "The multi-index fund of funds is a simple, all-weather solution providing flexibility to the money manager to invest in passively managed ETFs and Index Funds across asset classes, ranging from equity to debt to precious metals."

He added that the fund of funds provides the ease of investing at a "reasonable cost and is tax efficient."

How The Multi-Index Fund of Funds Works

Balasubramanian said while Aditya Birla Sun Life’s multiple funds help investors take exposure to various stocks and sectors, the fund of funds will allow investors to select the schemes available simultaneously.

He said it addresses the pain points like selecting the suitable mutual fund scheme, stocks, sectors or asset class, time to invest, cost, tax efficiency, etc.

According to the fund house, an in-house model would determine the optimal asset allocation to the most appropriate themes across the industry. It noted that equity exposure would help grow and diversify, while debt like gold and silver will give stability against any macroeconomic risk.

Of late, the Indian fund houses launched a flurry of NFOs as the economy improved by leaps and bounds from a Covid-19-induced slowdown. For example, Kotak AMC has launched the Kotak Business Cycle Fund, Samco Mutual Fund's Timer STP Edelweiss has unveiled two target maturity index funds—Edelweiss CRISIL IBX 50:50 Gilt Plus SDL (June 2027) & Edelweiss CRISIL IBX 50:50 Gilt Plus SDL (April 2037), and Tata Mutual Fund's target maturity index fund, the CRISIL -IBX Gilt Index (April 2026),

The International Monetary Fund (IMF) forecasts the Indian economy to grow by seven per cent this year. Likewise, the Reserve Bank of India (RBI) expects real GDP in 2022-23 to grow at 7.2 per cent, with the first quarter (Q1) at 16.2 per cent, Q2 at 6.2 per cent, Q3 at 4.1 per cent, and Q4 at 4.0 per cent.