Filed Papers with SEBI: Aditya Birla Sun Life Yield Enhancer Fund of Funds

Objective of the Fund

The primary investment objective of the Aditya Birla Sun Life Yield Enhancer Fund of Funds is to generate long-term capital appreciation by investing in a diversified portfolio of equity-oriented schemes, debt-oriented schemes, and commodity ETFs (Gold and Silver). The fund leverages the strengths of different asset classes to balance risk and return, making it suitable for investors seeking a combination of growth and income.

However, it is important to note that the scheme does not guarantee or assure any returns.

Name of the Fund

Aditya Birla Sun Life Yield Enhancer Fund of Funds

This fund is positioned as a Fund of Funds (FoF), which means it primarily invests in other mutual fund schemes rather than directly in stocks, bonds, or other securities.

Category

Fund of Funds – Open-ended scheme

The scheme is categorized as a Fund of Funds, focusing on equity-oriented, debt-oriented, and commodity ETFs.

Scheme Type

An open-ended fund of funds scheme investing in equity, debt, and commodity ETFs.

This open-ended structure allows investors to enter and exit the fund at any time, providing the flexibility that investors typically seek.

Asset Allocation

The Aditya Birla Sun Life Yield Enhancer Fund of Funds has a diversified asset allocation strategy, aiming to balance growth and stability:

• Equity Oriented Scheme – Arbitrage Fund: 10-65%
• Debt Oriented Schemes: 35-65%
• Gold/Silver ETFs: 0-20%
• Debt, Money Market Instruments, and Cash Equivalents: 0-5%
• Units issued by REITs & InvITs: 0-5%

Investment Strategy

The Aditya Birla Sun Life Yield Enhancer Fund of Funds employs an active investment strategy with a blend of equity, debt, and commodities:

1. Equity Allocation via Arbitrage Strategy:
2. Debt Allocation for Stability:
3. Commodities Exposure:
4. Opportunistic Investments in REITs & InvITs:

This multi-asset approach allows the fund to dynamically adjust its allocations based on market conditions, optimizing returns while managing risk effectively.

Benchmark

The performance of the fund is benchmarked against a combination of indices that reflect its diversified investment approach:

• 60% Nifty Corporate Bond Index A-II
• 30% Nifty 50 Arbitrage Index
• 5% Domestic Prices of Gold
• 5% Domestic Prices of Silver

This benchmark composition aligns closely with the fund’s investment strategy, providing a relevant yardstick for measuring its performance.

Fund Managers

The fund is managed by a team of experienced professionals with a deep understanding of the markets:

• Kaustubh Gupta
• Harshil Suvarnkar
• Lovelish Solanki

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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.