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All You Need To Know About Aditya Birla Sun Life Mutual Fund

By Consultants Review Team

Wednesday, 18 October 2023

As an open-ended fund of funds plan that invests in units of ETFs focused on US Treasury Bonds with maturities ranging from 3 to 10 years, Aditya Birla Sun Life Mutual Fund has launched the Aditya Birla Sun Life US Treasury 3-10 Year Bond ETFs Fund of Funds. The programme went on sale to the general public on October 16, 2023, and will end on October 30, 2023. Within five business days of allotment, the plan reopens for continuous sale and buyback.

What type of mutual fund plan is this?

This is an open-ended fund-of-funds strategy that invests in units of ETFs focused on US Treasury Bonds with maturities ranging from one to three years.

A Balasubramanian, Managing Director & CEO of Aditya Birla Sun Life AMC, commented on the new fund offering, saying, "Our new passive offerings present an opportunity for investors to potentially earn higher returns, gain currency diversity, and access a trusted treasury market." It allows the investor to capitalize on a once-in-a-lifetime opportunity created by a transitory yield curve dislocation in one of the world's largest debt markets. ABSLAMC strives to provide creative solutions that meet the evolving needs of our investors."

What is the primary goal of investing in this fund?

The Scheme's investment goal is to generate returns that are consistent with the performance of units of ETFs focused on US Treasury Bonds with maturities ranging from 3 to 10 years. The programme makes no guarantees or forecasts any profits. There is no promise or guarantee that the investing objective of the scheme will be met.

This product is appropriate for investors looking for:

  • Capital appreciation over time

  • Investment in ETF units focusing on US Treasury Bonds with maturities ranging from 3 to 10 years

How will the scheme measure its success?

The scheme's performance will be compared to that of the Bloomberg US Treasury 3- 10-year Index. The Bloomberg US Treasury 3-10 Year Index is one of several indices designed to evaluate the US Treasury market. The index's underlying securities have a minimum maturity term higher than three years and less than or equal to 10 years. As a result, it is regarded as an adequate benchmark for the system.

Is this scheme subject to any entrance or exit loads?

There is no "Entry Load" in this plan, which implies that investors do not have to pay anything to park their gains in this scheme. The "Exit Load" is calculated as follows:

  • For redemption/switch-out of units within 90 days of allotment: 0.5% of applicable NAV.

  • Nil for redemption/switch-out of units after 90 days from allotment date.

Who will be in charge of this scheme?

Dhaval Joshi has been designated as the fund manager of this scheme.

Is there any inherent risk in the fund?

According to the programme Information Document, the programme contains "Very High Risk" and is best suited to investors who understand that their money will be subject to only very high risk. Investors should, however, contact their financial advisors if they are unsure whether the product is appropriate for them.


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