Mutual Fund: Shriram AMC launches Shriram multi-asset allocation fund for long-term wealth creation. Key things to know

The Shriram Multi Asset Allocation Fund was introduced today, August 18th, 2023 by the Shriram Asset Management Company, which is a subsidiary of the Shriram Group. By investing in numerous asset classes, including stocks, bonds, and precious metals ETFs like gold and silver, this new fund hopes to provide inflation-adjusted long-term wealth building. On September 1st, 2023, the New Fund Offer (NFO) will end.

Using a two-pronged strategy, “The Shriram Multi Asset Allocation Fund provides investors with high returns for their risk tolerance. Its ‘risk parity’ between equities, bonds, and gold is designed to reduce risk while increasing returns for investors. Second, we use our Enhanced Quantamental Investment (EQI) model, which combines quantitative and fundamental analysis, to construct a risk-adjusted equity portfolio that is designed to provide alpha (returns in excess of the benchmark) on a consistent basis for the equity allocation. Low volatility (stable returns), momentum (growing returns), and low valuation (at the correct price) are the three parameters we use, and they have produced excellent outcomes in both historical and hypothetical scenarios. “We are confident that this single fund will find favour with our investors,” said Kartik L. Jain, president and chief executive officer of Shriram Asset Management Company. 

Shriram multi-asset allocation fund Allocation

The equity portion of the fund’s assets will range from 65% to 80%, and it will hold between 30 and 40 stocks selected using Shriram AMC’s Enhanced Quantamental Investment (EQI) model.  Gold and silver exchange-traded funds (ETFs) would receive 10% to 25% of the fund’s assets, with the option of up to 10% being invested in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) to mitigate credit risk.

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Shriram multi-asset allocation fund: Investment Options

Systematic Investment Plans (SIPs), top-ups, and Systematic Transfer Plans (STPs) from liquid or overnight funds let investors to routinely invest in this fund to help them achieve their financial and family planning objectives. Investing in a lump sum requires a minimum of 5,000, while SIPs require only 1,000 each month or 3,000 per quarter. There is zero commitment required.

Last year, Shriram Group recruited Mission1 Investments LLC, a mutual fund business based in the United States, to help revitalise the company’s mutual fund operations. As a result, Shriram AMC is now able to offer a wider variety of investment options to its clientele. ‘Performance, Products, and Placement’ is where the AMC is putting its attention as it lays the groundwork for long-term success.