NFO Alert: Aditya Birla Sun Life Mutual Fund launches Transportation and Logistics Fund; all it’s good to know

What sort of mutual fund scheme is that this?

This is an open-ended fairness fund scheme investing in transportation and logistics-themed firms. This product is appropriate for buyers looking for

• Long-term capital appreciation.
• Investment in fairness and equity-related devices following the transportation and logistics theme. 

What is the principle goal of investing on this fund?

The funding goal of the scheme is to attain long-term capital appreciation by investing in fairness and equity-related securities of firms following the transportation and logistics theme.

The funding technique of this scheme entails allocating 80-100% of its property to fairness and equity-related devices of firms related to the transportation and logistics sector, 0-20% to fairness and equity-related devices outdoors of this sector, 0-20% to debt and cash market devices, and 0-10% to items issued by REITs and InvITs.

How could one make investments on this scheme?

Investors can make investments underneath the scheme with a minimal funding of ₹500 per plan/choice and in multiples of Re 1. There is not any higher restrict for funding.

Under regular circumstances, the asset allocation of the scheme can be as follows:

Are there comparable mutual funds out there?

To date, many asset management companies (AMCs) have launched such transportation and logistics-themed funds, thus, permitting inclined buyers to avail of returns akin to the full returns of the securities on this specific index. Some of those embody:

How will the scheme benchmark its efficiency?

The efficiency of the scheme can be benchmarked towards the Nifty Transportation and Logistics TRI. As the scheme proposes to speculate predominantly in transportation and logistics firms, the benchmark can be applicable to match the efficiency of the scheme.

The Nifty Transportation & Logistics TRI Index goals to trace the efficiency of a portfolio of shares that broadly signify the transportation and logistics theme. The benchmark goals to trace the efficiency of a portfolio of shares that broadly signify the transportation and logistics theme inside primary industries like passenger automobiles, industrial automobiles, bikes, airways, delivery and logistics resolution suppliers, and so on. The largest 30 shares from eligible primary industries are chosen primarily based on the six-month common free-float market capitalization. The index is reconstituted semi-annually. This index is appropriate for the benchmarking of funds within the Transportation & Logistics theme.

Are there any entry or exit masses to this scheme?

This scheme includes no “Entry Load”, which implies that buyers should not have to pay something to park their earnings on this scheme. The “Exit Load” can be calculated as underneath:

• For redemption/swap out of items on or earlier than twelve months from the date of allotment: 1.00% of relevant NAV.
• For redemption/swap out of items after twelve months from the date of allotment: Nil.

Who will handle this scheme?

Dhaval Gala is the designated fund supervisor of this scheme.

Does the fund comprise any inherent threat?

The scheme includes “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

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Updated: 27 Oct 2023, 05:32 PM IST