Birla Sun Life Mutual Fund launches Birla Sun Life Equity Savings Fund
Pune (Nov. 12, 2014): Birla Sun Life Asset Management Company Limited, a part of Aditya Birla Financial Services Group (ABFSG), and investment manager for Birla Sun Life Mutual Fund (BSLMF), announced the launch of Birla Sun Life Equity Savings Fund, an openended equity scheme that aims to provide capital appreciation and incomedistribution by using a combination of equity derivatives strategies, arbitrageopportunities and pure equity investments. The New Fund Offer (NFO) Period opens on November 11, 2014 and is open till November 25, 2014 with price of units of the scheme at Rs. 10 per unit.
Speaking on the launch of the scheme, A. Balasubramanian, CEO, Birla Sun Life Asset Management Company Limited said, “We believe that equity as an asset class may see the best of periods as we move forward. The sustainability of efforts in reviving economic growth may put India in a different trajectory and create good experience for capital market investors. Our NFO looks to provide investors a unique mix of equity stocks, spotting arbitrage opportunities and an actively managed debt portfolio. Given that combination of equity is more than 65%, Birla Sun Life Equity Savings Fund aims to provide investors tax efficient returns with relatively low risk.”
Birla Sun Life Equity Savings Fundpredominantly invests in equities. The Scheme provides a greater degree ofdiversification than investing in a single asset class and also provides thetax efficiency of an equity fund i.e. the income becomes tax-free if the holding periodis more than one year from the date of allotment.The Scheme is benchmarked against S&P BSE 200 to the extent of 30% of portfolio, Crisil Short Term Bond Fund Index to the extent of 30% of the portfolio and Crisil Liquid Fund Index to the extent of 40% of portfolio. Birla Sun Life Equity Savings Fund will be managed by Mr. Satyabrata Mohanty and Mr. Prasad Dhonde.
Birla Sun Life Equity Savings Fundwill have Regular Plan and Direct Plan with a common portfolio and separate NAVs. Each of the above (Regular and Direct) Plan under the scheme will have thefollowing Options: (1) GrowthOption and (2) Dividend Option (Payout / Reinvestment / Sweep Facility).
The Scheme being open ended; the Units are not proposed to be listed on any stock exchange. However, the Fund may at its sole discretion list the Units on one or more stock exchanges at a later date if it is considers this to be necessary in the interest of unit holders of the scheme.
The subscription list may be closed earlier by giving at least one day’s notice in one daily newspaper.