New Delhi: Aditya Birla Sun Life Mutual Fund has launched Aditya Birla Sun Life Fixed Term Plan – Series Two (1214 days), closed-ended fund. The scheme seeks to generate income by investing in a portfolio of fixed income securities maturing on or before the term of the scheme.
The fund was launched on January 10 and the NFO (New Fund Offer) will close on January 17 for subscription.
Note that no redemption/ repurchase of units will be allowed before the maturity of the scheme as it is a closed-ended fund. Investors wishing to exit can do so through stock exchanges.
Minimum application amount is 1,000/- and in multiples of Rs. 10/ after that.
The fund invests 70-100% of the total assets in debt securities including government securities and state development loans (SDLs). The fund can also invest 0-30% of the total assets in money market instruments.
In the event of any deviation from the asset allocation mentioned above, the fund manager shall rebalance the portfolio within 30 days from the date of the said deviation.
The fund will be managed by Mohit Sharma. He has about 15 years of experience out of which 10 years are in the financial markets. He joined Aditya Birla Sun Life AMC in October 2015.
The performance of the scheme will be benchmarked to the performance of CRISIL Medium Term Debt Index. CRISIL Medium Term Debt Index is a suitable representation to track the performance of a medium term debt portfolio consisting of Government securities and AAA/AA+/AA rated corporate bonds.
The intended portfolio shows that 95-100% of the fund will be invested in government securities.
In terms of taxation, the gains on maturity of the scheme will be treated as capital gains. Long term gains with indexation benefit will be taxed at 20%.
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