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Aditya Birla Sun Life Mutual Fund has launched a new NFO in the debt fund category: “Aditya Birla Sun Life Fixed Term Plan – Series TL (1839 days)“.

Aditya Birla Sun Life Mutual Fund is launching a new debt fund, Aditya Birla Sun Life Fixed Term Plan – Series TL (1839 days). It will be a close-ended income scheme. The fund will invest in debt and money market securities maturing on or before the tenure of the scheme.

The New Fund Offer (NFO) period for the Aditya Birla Sun Life Fixed Term Plan – Series TL (1839 days) is from September 07, 2021 to September 08, 2021. Redemption/ repurchase of units of this fund shall not be allowed before the maturity of the scheme. Only upon maturity redemption of the scheme is permissible. Each series of the scheme may be listed on the NSE Limited (NSE) as per the discretion of the AMC. It will be done within 5 business days from the date of allotment. However, the scheme doesn’t assure or guarantee that the primary objective of the fund will be realised.

Objective

The scheme aims to provide capital appreciation over the long term. The scheme will make investments in a portfolio comprising fixed income securities maturing on or before the duration of the scheme.

Aditya Birla Sun Life Fixed Term Plan – Series TL (1839 Days) Fund Details

NOTE: 

  • The additional investment amount should be a multiple of INR 10/- after INR 1,000/-
  • There will be no continuous offer in this scheme.
  • Switch In- Investors can switch into the Scheme during the New Fund Offer Period.

If they are invested in existing Schemes of Aditya Birla Sun Life Mutual Fund and they have completed the Lock-in Period, they can switch into the new scheme.

  • Switch Out- Investors can switch out from the scheme only at the time of its maturity. However, the Scheme provides a switch out facility, under which investors will have the option of submitting a switch request at the time of investment. A request can be raised for switching the entire corpus on maturity in any open-ended scheme of the ABSLMF.

If an investor has opted for a switch out from the scheme at the time of investment and wishes to change the switch out option a written request must be submitted. The request should be submitted at least 30 days in advance before the maturity date.

Aditya Birla Sun Life Fixed Term Plan – Series TL (1839 days)Details
NFO Opening DateSeptember 07th, 2021
NFO Closing DateSeptember 08th, 2021
Re-open DateThe scheme is close ended, units will not be offered ongoing basis
Type of FundClose ended income scheme
Fund ManagerMr. Mohit Sharma
Minimum Investment AmountINR 1,000/- and in multiples of INR 10/- thereafter
Exit LoadNot ApplicableSince the Scheme will be listed on Stock Exchange any Exit Load is not applicable
SuitabilityModerate Risk
BenchmarkCRISIL Medium to LongTerm Debt index
Plans and OptionsRegular Plan & Direct Plan

Who Can Invest?

Aditya Birla Sun Life Fixed Term Plan – Series TL (1839 days) best suits investors who aim at benefitting from capital growth. The fund invests its assets primarily across debt securities, Government Securities, and SDLs (state development loans). Minor allocation will be made to money market instruments. The scheme will be subject to risks associated with interest rates, credit, liquidity, reinvestment, pre-payment, and concentration. Hence investors with a moderate risk-taking capability can consider this fund for long-duration investments. Moreover, investors looking for exposure in debt and money market securities can invest in this fund. The fund is suitable for investors interested in staying invested for a minimum of 5+ years.

Explore: Best Aditya Birla Sun Life Debt Mutual Funds

Fund Managers

Mr. Mohit Sharma

Mr. Mohit has a total experience of around 15 years out of which 10 years are in financial markets.  He has been associated with  Aditya  Birla  Sun  Life  AMC Limited since October 2015. Prior to joining Aditya Birla Sun Life AMC Limited, he operated his own healthcare-tech business from June 2012 to May 2015. Mr. Sharma has also worked with Standard Chartered Bank as an Interest Rates Trader from May 2007 to June 2011. Prior to which he was working with ICICI  Bank Ltd. from June  2006 to  April 2007. He started his career in June 2005 in the Equity Research domain with Irevna Ltd.

Funds Managed By Mr. Mohit Sharma

Asset Allocation

Aditya Birla Sun Life Fixed Term Plan – Series TL (1839 days) manages the asset allocation to debt securities including Government Securities and SDLs. Minimum allocation of 70% is done to debt instruments and a maximum of 30% will be done in money market securities. The fund aims to benefit investors by providing them exposure to debt schemes and generate income and capital growth in the long term. Following is the indicative asset allocation of the Aditya Birla Sun Life Fixed Term Plan – Series TL (1839 days).

InstrumentsIndicative Allocation(% of total assets)Risk Profile
MinimumMaximumHigh/ Medium/ Low
Debt Securities including Government Securities and State Development Loans (SDLs) (excluding Money Market Instruments)70%100%Low to Medium 
Money Market Securities0%30%Low to Medium

* The Scheme may invest in securitized debt instruments up to 50% of the corpus

The fund proposes to construct the scheme’s portfolio of fixed income securities maturing on or before the duration of the scheme. It will help in mitigating risks related to fixed investments in the securities market. The asset allocation will be done in the debt instruments such as Government Securities, SDL (excluding money market instruments), and money market securities. The strategy shows how the fund’s assets will be invested to provide income and capital appreciation during the investment tenure. The debt investments will reduce risks through portfolio diversification. However, the scheme’s strategy is to take care and not to dilute returns in the process of diversification. depend on several factors such as government borrowing, inflation, economic performance, etc. However, if the investments are held till the maturity of the investments, the value of the investments may not be subjected to this risk.

Concluding Remarks

Aditya Birla Sun Life Fixed Term Plan – Series TL (1839 days) is a close-ended income scheme that offers capital growth over the tenor of the scheme. The fund generates returns by reducing risk for the investors through diversification in the portfolio comprising debt and money market securities. The fund does not offer SIP, SWP, and STP facilities.

Investors must understand that a minimum investment horizon of 1839 days (5 years 3 days) is required to generate maximum benefits. Also, investors with moderate risk-taking capacity may consider this fund for long-term investments. It is advisable to take guidance from financial advisors before investing in the scheme. Since the fund does not guarantee returns, investors should regularly monitor the investment in this fund. It will ensure the results of the investment align with their financial goals.

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