Shriram Multi Asset Allocation Fund launches today
Based on data of recent NFOs from small and mid-sized funds, the company is working to mobilise Rs 100 to Rs 150 crore with its latest offering, Kartik L Jain, MD-CEO, Shriram AMC told the media here on Thursday.
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CHENNAI: The 29-year-old Shriram Asset Management Company is keen to mobilise around Rs 150 crore with its latest Shriram Multi Asset Allocation Fund (SMAF), launching today.
This new fund aims to offer long-term inflation-adjusted wealth creation through exposure to multiple assets such as equity, debt, and gold/silver ETFs. The New Fund Offer (NFO) will close on September 1, 2023.
Based on data of recent NFOs from small and mid-sized funds, the company is working to mobilise Rs 100 to Rs 150 crore with its latest offering, Kartik L Jain, MD-CEO, Shriram AMC told the media here on Thursday.
Last year, Shriram Group re-energised its MF business after on-boarding the US-based Mission1 Investments LLC as its strategic partner.
Kartik said, “Analysis of the last five years indicates that the category of multi-asset allocation funds has shown lesser volatility with equity-like returns. The exposure to gold also gives us a hedge against market volatility especially during crisis periods and hence reduces the drawdown (fall from the peak) and gives a quicker recovery back to the earlier level.”
Noting that the SMAF has a two-tier approach to deliver superior risk adjusted returns, he said its proprietary enhanced quantamental investment (EQI) model uses an integrated combination of quant and fundamental analysis to create a risk-adjusted equity portfolio that aims to deliver consistent alpha (returns above the benchmark). “We use three factors: low volatility (steady returns), momentum (increasing returns) and low valuation (at the right price) which has shown positive results in both back testing as well as forward testing. We believe this one fund will appeal well to our investors,” he added. Targeting investors in the 25 to 35 years and 35-45 years age groups, Kartik said the fund seeks to aid those who have started earning and looking at savings for reaching their goals, besides investors seeking retirement saving options.
So far, the fund has held 28 roadshows across the country, where the prospects have shown confidence in brand ‘Shriram.’ “Mutual funds are clearly a part of the Shriram Group’s portfolio,” following the group alignment, he sought to point out, while acknowledging that potential investors may take time to “warm up” to this re-energised avataar.
Between 65% to 80% of the fund’s corpus will be invested in equity, which includes 30 to 40 stocks from EQI model. The model relies on statistical data to make the right investment decisions for better fund performance while integrating quant as well as fundamental inputs for portfolio construction.
The minimum allocation of 65% to equities allows investors in this fund to benefit from long term capital gains tax of 10% (plus surcharge and cess) if they cross Rs 1 lakh of capital gains in a fiscal year.
The minimum investment amount for lumpsum is Rs 5,000. There is no lock-in period involved.
Boxn NFO to close on Sep 1Boxn Open-ended scheme investing in equity, debt and money market securities, and gold/silver ETFsBoxn As on July 31, 2023, AUM for the company stood at Rs 290 crore, of which 30%, ie, Rs 87 crore was in debt fundsBoxn Shriram AMC offers a mixed product line comprising hybrid, equity, and debt to enable customers meet key goals and objectivesBoxn Deepak Ramaraju and Gargi Bhattacharyya Banerjee serve as its fund managers
