Aditya Birla Sun Life Multi-Cap NFO: Curated combo of three focus portfolios

The new fund offer combines stability of large caps and the high growth potential of mid & small caps.

Staff Writer   /   April 20, 2021

Aditya Birla Sun Life AMC , the investment manager to Aditya Birla Sun Life Mutual Fund , has launched the Aditya Birla Sun Life Multi-Cap Fund, an open ended equity scheme investing across large cap, mid cap & small cap stocks.

The NFO is open from April 19, 2021 till May 3, 2021. Any multi-cap category fund is mandated to invest at least 25 per cent in each of the three market cap segments of large, mid and small caps. Read on to know more.

Multicap funds

At present there are 10 multicap equity funds in the industry, with the biggest ones being Nippon India Multi Cap, ICICI Pru Multicap, Invesco India Multicap.

The objective of Aditya Birla Sun Life Multi-Cap is to achieve long-term growth of capital, at relatively moderate levels of risk through a diversified, research-based investment in Large, Mid & Small cap companies.

The scheme will invest 25-45 per cent in Large cap and a minimum of 25-35 per cent each in Mid and Small cap segments.

It will follow a bottom-up approach of stock selection.

The portfolio will be biased towards secular growth opportunities from across the market spectrum.  

Fund positioning

A well-defined and disciplined market cap allocation helps invest in fast growing sectors and companies from across the spectrum. Also, Aditya Birla Sun Life Multi-Cap aims to balance out the risk reward proposition with relative safety of large caps.

With a focused and bottom-up stock selection approach, the fund offers a well curated portfolio of high conviction stock ideas from the fund house. The fund is focused towards secular growth opportunities that cover a broad range of sectors and companies and enables healthy participation in the ensuing economic recovery.

The fund’s portfolio will have 50-60 companies. The investment universe is 400+ companies.

Fund-house speak

A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC Limited 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 enhancers and rewarding.  Aditya Birla Sun Life Multi-Cap Fund combines the power of all three to offer a curated portfolio of high conviction stocks across the three market caps. The fact that one can invest in this through SIPs makes it a convenient way to participate in India’s long term growth story”.

Historically, mid and small cap segments outperform during periods of economic recovery. “With an easy fiscal and monetary policy to support economic growth, low interest rate, surplus liquidity, conducive policies aligned to Production Linked Incentives (PLI), Aatmanirbhar Bharat, Development Finance Institution (DFI), labour and industrial reforms, unprecedented digital adoption, brings forth multiple macro advantages that reaffirms the expected growth momentum of Indian economy which can fuel all the segments of the market especially mid and small cap companies”, Balasubramanian added.

Fund details

In a low interest rate environment where traditional savings instruments are going to give sub-par returns, equity is the favourable asset class for wealth creation purpose. Within this, a multi-cap approach enables diversification through 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. The minimum application amount is of Rs 500 and in multiples of Re 1 thereafter during the New Fund Offer period.

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