Shriram Asset Management Company, part of the Shriram Group, launched the Shriram Multi Asset Allocation Fund today, August 18th, 2023. 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 1st, 2023.
“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,” Kartik L Jain, MD & CEO, Shriram Asset Management Company said.
Shriram multi-asset allocation fund Allocation
Between 65% to 80% of the fund’s corpus will be invested in equity, which includes 30 to 40 stocks from Shriram AMC’s proprietary Enhanced Quantamental Investment (EQI) model. The fund would also allocate 10% to 25% of funds in high quality (AAA) Short to Medium term debt, preferably in government and government-backed securities to avoid any credit risk; 10% to 25% in gold/silver ETFs, with the option up to 10% in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
Shriram multi-asset allocation fund: Investment Options
Investors can regularly invest in this fund through Systematic Investment Plans (SIP), top-ups, or Systematic Transfer Plans (STP) from liquid or overnight funds to meet their financial and family goals. The minimum investment amount for lumpsum is ₹5,000 while for SIPs it is ₹1,000 per month or ₹3,000 per quarter. There is no lock-in period involved.
Shriram Group re-energized its mutual fund business last year bringing in US-based Mission1 Investments LLC as its strategic partner. With this, Shriram AMC has diversified its product portfolio, bringing relevant and differentiated investment solutions to its customers. The AMC is focusing on ‘Performance, Products and Placement’ to set the foundation for sustainable growth.
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Updated: 18 Aug 2023, 12:57 PM IST
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