New Delhi: Aditya Birla Sun Life AMC Limited has announced the launch of Turbo Systematic Transfer Plan (STP), in which unitholders can choose to transfer a variable amount from a source plan to a target plan at defined intervals.
In Turbo STP, the variable or actual amount of transfer to the target plan will be determined based on the results of the in-house model, which helps in ascertaining the market valuation.
This model tracks technical and fundamental parameters such as valuation ratio, trend ratio and volatility ratio to arrive at Equity Valuation Multiplier (EVM). This value helps in determining the actual amount to be transferred based on the pre-selected STP base amount.
Turbo STP enables unitholders to move variable amounts from one source plan to one target plan at stipulated intervals. It helps to invest more when market valuations are attractive and less when market valuations become costly to optimize investment growth potential.
This facility will be available in weekly, monthly and quarterly intervals.
Commenting on the launch, A Balasubramaniam, Managing Director and CEO, Aditya Birla Sun Life AMC said, “Turbo STP is a convenience for market participants who have a lump sum amount to invest and issues with regard to market valuation. They have to be faced, whether they are attractive or costly, and the amount they should contribute and for what period. This will help them invest more at attractive market valuation levels and less when valuations are costly.”
Illustration:
Date – Day 1 Frequency – Monthly
Base Installment Amount (x) – 10,000/-
Number of installments – Default
Multiplier range – 0.2x to 5x
If the latest EVM is 0.72, the matrix defines the transfer of 0.2 times of the base installment amount i.e. 2,000 will be transferred from the source plan to the target plan.
If the latest EVM is 1.31, the matrix defines the transfer of 3.66 timers of the base installment amount i.e. 36,600 will be transferred from the source plan to the target plan.
ABSL AMC serves approximately 8.1 million investor folios with a pan India presence at more than 280 locations and was more than 2.93 trillion worth of assets (AUM) under management as of June 30 across its suite of mutual funds (excluding our domestic FOF), portfolio management services, offshore and real estate offerings.
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