Mumbai: Aditya Birla Sun Life AMC Limited (formerly known as Birla Sun Life Asset Management Company Ltd.), a subsidiary of Aditya Birla Capital Limited (formerly known as Aditya Birla Financial Services Ltd.), an investment manager to Aditya Birla Sun Life Mutual Fund (ABSLMF) announced the launch of the ABSL Fixed Term Plan Series – QC (“the scheme”), a close-ended income scheme with tenure of 1116 days, from and including the date of allotment.
The New Fund Offer (NFO) is open for subscription from June 06 – June 11, 2018, with a price of units of the scheme at face value of Rs.10 per unit.
A Fixed Term Plan (FTP) enables investors to get the indexation benefit from investments over a 3 year period, thus reducing the tax outgo. FTPs predominantly invest in corporate bonds of diverse credit ratings and hence, across sectors that lowers risk owing to diversification and may as well contribute towards optimization of portfolio gains.
Speaking on the launch of the scheme, A. Balasubramanian, CEO, Aditya Birla Sun Life AMC Limited said, “We believe this is an opportune time for investors to lock in their gains with bond yields having risen across tenors and rating profiles such that they are trading at attractive absolute levels. As the scheme has buy and hold strategy, the predictability of return is also relatively easy. And adjusted for tax the scheme provides the best alternative to traditional savings instruments.”
The scheme will have Regular Plan and Direct Plan with a common portfolio and separate NAVs. Each of the Regular and Direct Plan under the scheme will have Growth Option, and Dividend Option (Normal Dividend and Quarterly Dividend sub-option) with Payout Facility.
The Scheme is benchmarked against CRISIL Composite Bond Fund Index and will be managed by Mohit Sharma, Fund Manager, Aditya Birla Sun Life Mutual Fund.
The scheme aims to generate superior risk-adjusted returns on a consistent basis through a research-driven investment approach in line with the investment objective of the scheme.
The endeavour of the Fund Manager will be to allocate assets of the scheme between various debt and money market instruments maturing on or before the duration of the scheme.
The actual percentage of investment in various fixed income securities will be decided after considering various factors like the prevailing interest rate and inflation scenario, the performance of corporate sector, general liquidity and other considerations.