Birla Sun Life Asset Management Company, a part of Aditya Birla Financial Services Group (ABFSG), and investment manager for Birla Sun Life Mutual Fund (BSLMF), has launched the Birla Sun Life Emerging Leaders Fund – Series 1.
The fund is a close-ended equity scheme with a tenure of three years that invests in equity and equity-related securities of companies in the small and mid-cap segment that have a potential to appreciate in the long run.
The primary objective of the scheme is to generate long-term capital appreciation by investing predominantly in equity and equity related securities of such companies.
A. Balasubramanian, CEO, Birla Sun Life Asset Management Company, says: "The Indian economy is on the road to recovery. We expect steady improvement in macro-stability with a gradual acceleration in GDP growth. Small and mid-caps which may be volatile in short term, tend to do very well in periods of rising economic growth and may be expected to bounce back strongly over the next two to three years. Our NFO thus looks to provide investors a good opportunity to make the most of this growth phase over the three-year horizon."
The fund aims to help investors grow their wealth through the success of select small and mid-cap companies, which are identified after a very thorough, research-oriented portfolio selection process.
The corpus of the scheme will be primarily invested in equity and equity related securities of the companies in the small and midcap segment that have a potential to appreciate in the long run.
The investment emphasis of the scheme would be on identifying companies with sound corporate managements and good prospects of future growth.
The fund will select stocks from within the investment universe based on its internal analysis based on the following criteria: visionary and trustworthy management with established track record, significant business presence in the area of their operations, prospects for future growth and scalability and financial discipline and returns as measured by ratios like return on investment (ROI) and return on equity (ROE), and valuations in relations to broad market and expected growth in earnings.
The new fund offer period opens on 25 April and is open until 30 April with units of the scheme priced at Rs. 10 per unit.
The units offered under the scheme will be listed on National Stock Exchange (NSE) within five business days from the date of allotment.
