Shriram AMC launches Multi Asset Allocation Fund, can start investing from ₹ 1000

Asset Management Company of Shriram Group has launched Shriram Multi Asset Allocation Fund in the market. The objective of this new fund is to give better returns to people in the medium and long term by investing in equity.

If you also invest in mutual funds, then Shriram Group's Shriram Multi Asset Allocation Fund can be a good option for you. Shriram AMC of Shriram Group has launched this new fund to provide better returns to the investor in the medium and long term. This fund scheme will invest in debt, gold and silver ETFs. Its New Fund Offer (NFO) is closing on 1 September 2023.

The company says that investors who meet their financial and investment goals can invest in this fund. In this, they will get options ranging from Liquid or Overnight Fund to Systematic Investment Plan (SIP), Top-up or Systematic Transfer Plan (STP).

Start investing from just Rs 1,000

In this mutual fund scheme, people will have to invest a minimum of Rs 5,000 for one time investment. Whereas for SIP it can be started with a minimum amount of 1,000 per month. A monthly option of Rs 3,000 is also available in this. This does not include the lock-in period.

65% to 80% of this fund will be invested in equity. This includes 30 to 40 per cent stocks of Enhanced Quantamental Investment (EQI) model owned by Shriram AMC. Along with this, it depends on the statics data for better performance of the fund. With a minimum 65% investment in equity, the fund also provides investors with the benefit of long term capital gain of 10%.

Invest in AAA debt assets to avoid risk

Not only this, to reduce the mutual fund risk, it will also invest 10 to 25 percent in short term and medium term debt or bonds of high rating (AAA). At the same time, 10 to 25 percent in government or its backed bonds, gold and silver ETFs, up to 10 percent in Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InVit) will also be kept.

On the occasion of the launch of this multi asset allocation fund, Shriram AMC MD and CEO Karthik L. Jain said, “The analysis of the last 5 years shows that the category of multi asset allocation funds has seen low volatility with equity like returns. Hence it is a good option to meet the financial goal. By investing in gold, we will definitely get relief from volatility in adverse market conditions.

Shriram Group had made US-based Mission-1 Investments LLC its strategic partner last year to strengthen its mutual fund business.

This new fund will also provide an investor with the benefit of long term capital gains tax at the rate of 10% and cess and surcharge if the capital gain crosses Rs 1 lakh in a financial year.