Birla Sun Life AMC launches close-ended equity scheme

Birla Sun Life Asset Management Company (BSLAMC) said it has launched a close-ended equity scheme with a tenure of 3.5 years

The product - Resurgent India Fund-Series 4 - is a close-ended equity scheme with a tenure of 3.5 years from and including the date of allotment, the company, a part of Aditya Birla Financial Services (ABFS), said.

BSLAMC is also the investment manager for Birla Sun Life Mutual Fund (BSLMF).

The New Fund Offer (NFO) opens for subscription on June 23 and closes on July 7 with the price of units of the scheme fixed at face value of Rs 10 per unit, a company statement said.

"Our NFO looks to provide investors a good opportunity to benefit from companies which stand to appreciate in the long run, and gain from the turnaround in the Indian economy over the 3.5-year horizon," A Balasubramanian, CEO, Birla Sun Life Asset Management Company, said.

The product aims to generate capital appreciation by investing primarily in equity and equity-related securities (including options premium), that are likely to benefit from recovery in the Indian economy.

The scheme will allocate around 80-100 per cent of assets in equity and equity-related securities, and 0-20 per cent in money market and debt instruments, the statement said.

As part of the investment strategy, the scheme will book profits at opportune moments to take advantage of the volatility in the market. It may also invest a small portion of its corpus in fixed income securities, including money market instruments, to manage liquidity requirements, BSLAMC said.

The scheme will have regular and direct plan option with a common portfolio and separate NAVs, it added.