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Business News/ Money / Personal Finance/  NFO Alert: Aditya Birla Sun Life Fixed Term Plan - Series UF (180 days); all you need to know
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NFO Alert: Aditya Birla Sun Life Fixed Term Plan - Series UF (180 days); all you need to know

The scheme opened for public subscription on February 27, 2023, and will close on March 02, 2023.

Aditya Birla Sun Life Mutual Fund announced the launch of the Aditya Birla Sun Life Fixed Term Plan - Series UF (180 days)Premium
Aditya Birla Sun Life Mutual Fund announced the launch of the Aditya Birla Sun Life Fixed Term Plan - Series UF (180 days)

Aditya Birla Sun Life Mutual Fund announced the launch of the Aditya Birla Sun Life Fixed Term Plan - Series UF (180 days), a closed-ended income fund investing in the CRISIL Ultra Short-Term Debt Index constituents. The scheme opened for public subscription on February 27, 2023, and will close on March 02, 2023.

Q. What kind of mutual fund scheme is this?

This kind of debt scheme aims to generate returns commensurate with the performance of the CRISIL Ultra Short-Term Debt Index. However, there is no assurance that the scheme’s investment objective will be realized. This is a relatively low-interest rate risk and moderate credit risk scheme.

Q. What is the main objective of investing in this fund?

The scheme seeks to generate income by investing in a portfolio of fixed-income securities maturing on or before the tenure of the scheme. The scheme does not guarantee/indicate any returns. There can be no assurance or guarantee that the investment objective of the scheme will be achieved.

Q. How may one invest in this fund?

The scheme offers units of Rs. 10 each. Investors can invest under the scheme with a minimum investment of  Rs 1000 and any amount thereafter. The scheme will have a Regular Plan and Direct Plan with a common portfolio and separate NAVs.

Each of the above Regular and Direct Plans under the scheme will have the following options/sub-options:

  • Growth Option;
  • Payout of Income Distribution cum capital withdrawal (IDCW) Option

Under normal circumstances, the asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows:

Instrument Minimum Allocation (% of Total Assets)Maximum Allocation (% of Total Assets)Risk Profile
Debt Securities including Government securities, State Development Loans (SDLs) and Money Market Instruments0100Low to moderate

Q. Are there similar mutual funds in the market?

Many asset management companies have launched such funds in the past. Some of them include:

Name of the fund 

Three-month returns (in %)

UTI Ultra Short-Term Fund3.04
WhiteOak Capital Ultra Short-Term Fund2.68
Baroda BNP Paribas Ultra Short Duration Fund1.71
ICICI Prudential Ultra Short-Term Fund1.71
DSP Ultra Short Fund1.70
Tata Ultra Short-Term Fund1.67
HSBC Ultra Short Duration Fund1.66
Bank of India Ultra Short Duration Fund1.65
Canara Robeco Ultra Short-Term Fund1.59
Source: MoneyControl

Q. How will the scheme benchmark its performance?

The performance of the scheme will be benchmarked to the performance of the CRISIL Ultra Short-Term Debt Index. The fund reserves the right to change the said benchmark and/or adopt one/more other benchmarks to compare the performance of the scheme.

Q. Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load", which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load" is also “Zero". No redemption/repurchase of units shall be allowed prior to the maturity of the scheme. Investors wishing to exit may do so through stock exchange mode.

Q. Who will manage this scheme?

Mohit Sharma is the fund manager for the scheme

Q. Does the fund contain any inherent risk?

The scheme involves “Moderate Risk" as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be at moderate risk. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

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Published: 28 Feb 2023, 10:11 AM IST
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