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Aditya Birla Sun Life Mutual Fund opens two NFOs today: Are they good options for short and long-term investors

18 September 20243 mins read by Angel One
As Aditya Birla Sun Life presents these new opportunities, investors are invited to explore and evaluate their compatibility with personal financial aspirations.
Aditya Birla Sun Life Mutual Fund opens two NFOs today: Are they good options for short and long-term investors
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Attention investors! Aditya Birla Sun Life has launched two exciting new fund offers (NFOs) this December: the Aditya Birla Sun Life Fixed Maturity Plan – Series UR (85 days) and the Aditya Birla Sun Life Crisil IBX Gilt April 2033 Index Fund. But with so many options out there, choosing the right one can be confusing. Fear not, folks! This blog will break down both funds into bite-sized pieces, helping you decide which one matches your investment goals and risk appetite.

Short-Term Certainty: Aditya Birla Sun Life Fixed Maturity Plan – Series UR (85 days)

Think of this plan as a reliable parking spot for your money for a short period. It’s close-ended, meaning you invest for a fixed 85 days and then get your money back (hopefully with some extra!). This makes it ideal for parking funds you need soon or for building a safe emergency fund.

Key points:

Low risk: Focuses on government securities and money market instruments, keeping things stable.

No guaranteed returns: While it aims for good returns, there’s no guarantee.

Flexible exit: Exit through listed units on the stock exchange if needed.

Minimum investment: Rs 1,000, making it accessible to everyone.

Long-Term Vision: Aditya Birla Sun Life Crisil IBX Gilt April 2033 Index Fund

This one’s for the patient investors. It’s an open-ended fund that tracks the CRISIL IBX Gilt Index, aiming to mirror its performance over the long term (think years, not months). This means your money is invested in government bonds with maturities till April 2033.

Key points:

Moderate risk: Higher interest rate risk compared to the Fixed Maturity Plan, but lower credit risk.

Potential for long-term gains: Targets the performance of a well-established index.

Choice of options: Get periodic payouts or reinvest your earnings for growth.

Minimum investment: Rs 1,000, again making it accessible.

Investment Insights:

Match your goals: Choose the Fixed Maturity Plan for short-term needs, the Gilt Index Fund for long-term goals.

Consider risk: Both funds have different risk profiles. Assess your comfort level before investing.

Always read the offer documents carefully before investing. With the right information and a clear understanding of your goals, you can make an informed decision and watch your investments grow!

Disclaimer:This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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