Aditya Birla Sun Life Mutual Fund announced the launch of the Aditya Birla Sun Life Transportation and Logistics Fund. The scheme opened for public subscription on October 27, 2023, and will close on November 10, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.
What kind of mutual fund scheme is this?
This is an open-ended equity fund scheme investing in transportation and logistics-themed companies. This product is suitable for investors seeking
- Long-term capital appreciation.
- Investment in equity and equity-related instruments following the transportation and logistics theme.
What is the main objective of investing in this fund?
The investment objective of the scheme is to achieve long-term capital appreciation by investing in equity and equity-related securities of companies following the transportation and logistics theme.
The investment strategy of this scheme entails allocating 80-100% of its assets to equity and equity-related instruments of companies associated with the transportation and logistics sector, 0-20% to equity and equity-related instruments outside of this sector, 0-20% to debt and money market instruments, and 0-10% to units issued by REITs and InvITs.
How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹500 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
| Instruments |
Indicative allocations (% of total assets) |
Risk Profile | |
|
Minimum |
Maximum |
||
|
Equity and equity-related instruments# of companies following transportation and logistics theme |
80% |
100% |
Very High |
|
Equity and equity-related instruments# other than the transportation & logistics theme |
0% |
20% |
Very High |
|
Debt and Money Market Instruments |
0% |
20% |
Low to Moderate |
|
Units issued by REITs & InvITs |
0% |
10% |
Very High |
Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such transportation and logistics-themed funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. Some of these include:
|
Mutual Fund House |
Name of the Scheme |
10-year returns (in %) |
|
ICICI Prudential Mutual Fund |
ICICI Prudential Transportation and Logistics Fund |
– |
|
UTI Mutual Fund |
UTI Transportation and Logistics Fund |
19.52 |
|
Bandhan Mutual Fund |
Bandhan Transportation and Logistics Fund |
– |
|
HDFC Mutual Fund |
HDFC Transportation and Logistics Fund – Direct Plan |
– |
| Source: AMFI | ||
How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked against the Nifty Transportation and Logistics TRI. As the scheme proposes to invest predominantly in transportation and logistics companies, the benchmark would be appropriate to compare the performance of the scheme.
The Nifty Transportation & Logistics TRI Index aims to track the performance of a portfolio of stocks that broadly represent the transportation and logistics theme. The benchmark aims to track the performance of a portfolio of stocks that broadly represent the transportation and logistics theme within basic industries like passenger vehicles, commercial vehicles, motorcycles, airlines, shipping and logistics solution providers, etc. The largest 30 stocks from eligible basic industries are chosen based on the six-month average free-float market capitalization. The index is reconstituted semi-annually. This index is suitable for the benchmarking of funds in the Transportation & Logistics theme.
Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be calculated as under:
- For redemption/switch out of units on or before 365 days from the date of allotment: 1.00% of applicable NAV.
- For redemption/switch out of units after 365 days from the date of allotment: Nil.
Who will manage this scheme?
Dhaval Gala is the designated fund manager of this scheme.
Does the fund contain any inherent risk?
The scheme involves “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