Shriram Mutual Fund announced the launch of the Shriram Multi Asset Allocation Fund, an open-ended scheme investing in equity, debt & money market securities and gold/silver ETFs and related instruments.
The scheme opened for public subscription on August 18, 2023, and will close on September 01, 2023. The scheme re-opens for continuous sale and repurchase on or before September 15, 2023.
What kind of mutual fund scheme is this?
This is an open-ended scheme investing in equity, debt & money market securities and gold/silver ETFs and related instruments.
Kartik L Jain, MD & CEO, Shriram Asset Management Company said, “The Shriram Multi Asset Allocation Fund has a two-tier approach to delivering superior risk-adjusted returns. Firstly, its ‘risk parity’ approach between equity/debt/gold aims to minimise volatility and maximise returns, thereby giving better returns to the investor. Secondly, for the equity allocation, our 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 very positive results in both back testing as well as forward testing. We believe this one fund will appeal well to our investors,” added Jain.
What is the main objective of investing in this fund?
The primary objective of the scheme is to generate long-term capital appreciation with inflation-beating returns by investing in equity and equity-related securities, debt and money market instruments, gold/silver ETFs, and REITs/InvITs. There is no assurance that the investment objective of the scheme will be achieved.
How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹5000 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|
Equity and equity-related Instruments
Debt and money market instruments and cash
Low to Moderate
Moderate to High
Units issued by REITs and InvITs
Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such multi-asset funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:
Name of the fund
Five-year returns (in %)
|Quant Multi Asset Fund|
ICICI Prudential Multi-Asset Fund
HDFC Multi-Asset Fund
Axis Multi Asset Allocation Fund
SBI Multi Asset Allocation Fund
UTI Multi Asset Fund
How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked against the Nifty 50 TRI (70%) + NIFTY Short Duration Debt Index (20%) + Domestic prices of Gold (8%) + Domestic prices of Silver (2%).
The weightages as provided in the benchmark are as per intended investments to be made in those asset classes.
The AMC/Trustee reserves the right to change the benchmark for evaluation of the performance of the Scheme from time to time, subject to SEBI Regulations and other prevailing guidelines if any.
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 charged as under
1% of the applicable NAV, if redeemed/switched out within one year from the date of allotment
The AMC reserves the right to revise the load structure from time to time. Such changes will become effective prospectively from the date such changes are incorporated.
Who will manage this scheme?
Deepak Ramaraju and Gargi Bhattacharyya Banerjee would be looking after the investments in 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.