MUMBAI:
Aditya Birla Sun Life AMC Limited (formerly known as Birla Sun Life Asset Management Company Ltd.), a subsidiary of Aditya Birla Capital Limited (formerly known as Aditya Birla Financial Services Ltd.), and investment manager to Aditya Birla Sun Life Mutual Fund (ABSLMF) launched on February 19, 2019 the Aditya Birla Sun Life Retirement Fund (“the fund”), an open-ended retirement solution oriented scheme having a lock-in of 5 years or till retirement age (whichever is earlier).
The fund has collected Rs. 166 crore in its NFO period, attracting investors from 241 locations from across the country. The fund in its NFO period that was open for two weeks garnered 23,743 applications, 42% of which are from B30 cities (beyond Top 30 cities) alone. Close to 40% of the applications have come through the SIP route, with a significant portion of it in Century SIP, ABSLMF’s offering of SIP with a life cover. The fund has also achieved in adding over 7,000 new customers to its existing investor base.
The fund offers four investment options designed as per suitability of various age groups and different risk profiles of an individual that includes – The 30s plan with 80-100 % of the corpus invested in equity and equity related instruments and the rest in debt and money market instruments. The 40s plan has a flexible equity exposure between 65-80% and the 50s plan has a flexible debt exposure in the range of 75- 100%. In addition to these, there is a 50s Plus Debt Plan for those nearing retirement age, which invests 100% in debt and money market instruments.
Speaking on the fund, A. Balasubramanian, CEO, Aditya Birla Sun Life AMC, said: “The most interesting insight coming from Aditya Birla Sun Life Retirement Fund is that the maximum applications have come for the 30s plan. This is a clear indication of the maturity of investors who understand the importance of long term financial planning at an early age and are ready to stay on course through disciplined investments. The fund provides investors an investment solution to plan their retirement from as early as their 30s, given the rising cost of living. What is also noteworthy is the contribution coming from diversified channels across the board exhibiting the distribution strength.”
“The strong proposition of our fund with the scope to pick the suitable asset allocation and at various entry-ages is further substantiated by the fact that the next highest number of applications came for the 50s plus debt plan. We believe it is never too late to start one’s financial empowerment and our retirement fund caters to the needs of retired individuals too. Efficient retirement planning is extremely important to manage future expenses and asset allocation as per age, and a feature rich investment option like this can address the needs that come with growing old,” added Balasubramanian.
The fund can be availed for just Rs. 1,000/- and its sheer spread exhibits appetite for long term investing from the Indian investor, irrespective of a lock-in commitment. The interest in a solution oriented fund like this goes on to show that mutual fund solutions like this are well aligned to address specific needs of investors. The idea is to encourage a disciplined long term approach towards investment, particularly when it comes to planning one’s life after retirement.
