1. The 30s Plan: The plan aims to invest primarily in a well-diversified portfolio of equity and equity-related securities.

2. The 40s Plan: The plan invests predominantly in equity and equity related instruments with marginal allocation to debt and money market instruments.

3. The 50s Plan: The plan invests predominantly in debt and money market instruments with marginal allocation to equity and equity related instruments.

4. The 50s Plus - Debt Plan: The plan invests in various debt securities and money market instruments issued by corporates and/or state and central government.

Table 1: NFO Details

(Source: Scheme Information Document)

How will Aditya Birla Sun Life Retirement fund allocate its assets?

Under normal circumstances, the asset allocation of the Investment Plans under the Scheme would be as follows:

1. 30s Plan

Table 2a: Asset allocation for 30s Plan

Instrument	Risk Profile	Range
Equity & Equity related instruments	Medium to High	80% - 100%
Debt & Money Market Instruments	Low to Medium	0-20%

(Source: Scheme Information Document)

- This plan may invest a maximum of 20% in securitized debt

2. 40s Plan

Table 2b: Asset allocation for 40s Plan

Instrument	Risk Profile	Range
Equity & Equity related instruments	Medium to High	65% - 80%
Debt & Money Market Instruments	Low to Medium	20% - 35%

(Source: Scheme Information Document)

- This plan may invest a maximum of 35% in securitized debt

3. 50s Plan

Table 2c: Asset allocation for 50s Plan

Instrument	Risk Profile	Range
Debt & Money Market Instruments	Low to Medium	75% - 100%
Equity & Equity related instruments	Medium to High	0% - 25%

(Source: Scheme Information Document)

- This plan may invest a maximum of 50% in securitized debt.

4. 50s Plus-Debt Plan

Table 2d: Asset allocation for 50s Plus-Debt Plan

Instrument	Risk Profile	Range
Debt & Money Market Instruments	Low to Medium	100%

(Source: Scheme Information Document)

​- This plan may invest a maximum of 50% in securitized debt.

Further the scheme information document states that, each Investment Plan under the Scheme may also invest up to 50% of the portfolio (i.e. net assets including cash) in such derivative instruments as may be introduced from time to time subject to framework specified by SEBI, for the purpose of hedging and portfolio balancing and other uses as may be permitted under SEBI Regulations.

The cumulative gross exposure to equity, equity related instruments, debt, money market instruments and derivatives shall not exceed 100% of the net assets of the respective Investment Plans.

Under normal circumstances, each Investment Plan offered under this Scheme shall not have an exposure of more than 25% of its net assets in foreign securities.

What will be the Investment Strategy?

The scheme focuses to help an investor plan his retirement and for that construction of each portfolio has its own strategy as follows.

1. The 30s Plan:

   The Plan aims to invest primarily in a well-diversified portfolio of equity and equity-related securities. The fund manager proposes to concentrate on business and economic fundamentals driven by in-depth research techniques and employing the full potential of the research team at the AMC.

   The stock selection process proposed to be adopted is generally a bottom-up approach seeking to identify companies with long term sustainable competitive advantage. The fund would also use a top-down discipline by ensuring representation of companies from all key sectors in the respective benchmarks.

   The fund manager would primarily focus on long term growth for identifying stocks on the equity side. The objective would be to identify businesses with superior growth prospects and strong management available at a reasonable valuation and offering higher risk-adjusted returns.

   The fund would follow a blend of bottom-up approach (for stock selection) and top-down approach (for sector allocation). The fund would follow flexi cap approach on market cap depending on risk-return profile of various sub-segments of the market.

   The decision to sell would be based on price reaching its fair value or availability of alternative investment opportunity offering higher risk-adjusted returns or anticipated price appreciation no longer possible due to change in business fundamentals.

2. The 40s Plan:

   The plan invests predominantly in equity and equity related instruments with marginal allocation to debt and money market instruments. On the equity front, the fund manager proposes to concentrate on business and economic fundamentals driven by in-depth research techniques and employing the full potential of the research team at the AMC.

   The stock selection process proposed to be adopted is generally a bottom-up approach seeking to identify companies with long term sustainable competitive advantage. The fund would also use a top-down discipline by ensuring representation of companies from all key sectors in the respective benchmarks.

   The fund manager would primarily focus on long term growth for identifying stocks, hence would follow flexi cap approach on market cap depending on risk-return profile of various sub-segments of the market. The objective would be to identify businesses with superior growth prospects and strong management available at a reasonable valuation and offering higher risk-adjusted returns.

   On the debt front, the Fund invests in various debt securities and money market instruments issued by corporates and/or state and central government. With the aim of controlling risks, rigorous in-depth credit evaluation of the instruments proposed to be invested in is carried out by the Investment Team of the AMC.

3. The 50s Plan

   The plan invests predominantly in debt and money market instruments with marginal allocation to equity and equity related instruments. On the debt front, the Fund invests in various debt securities and money market instruments issued by corporates and/or state and central government. With the aim of controlling risks, rigorous in-depth credit evaluation of the instruments proposed to be invested in is carried out by the Investment Team of the AMC.

   On the equity front, the fund manager proposes to concentrate on business and economic fundamentals driven by in-depth research techniques and employing the full potential of the research team at the AMC.

   The stock selection process proposed to be adopted is generally a bottom-up approach seeking to identify companies with long term sustainable competitive advantage. The fund would also use a top-down discipline by ensuring representation of companies from all key sectors in the respective benchmarks. The fund manager would primarily focus on long term growth for identifying stocks, hence would follow flexi cap approach on market cap depending on risk-return profile of various sub-segments of the market.

4. The 50s Plus-Debt Plan

   The Plan invests in various debt securities and money market instruments issued by corporates and/or state and central government. The AMC aims to identify securities, which offer superior levels of yield at lower levels of risk. As per the asset allocation pattern, the Fund invests in various debt securities and money market instruments issued by corporates and/or state and central government. With the aim of controlling risks, rigorous in-depth credit evaluation of the securities proposed to be invested in will be carried out by the investment team of the AMC.

   The credit evaluation includes a study of the operating environment of the company, the past track record as well as the prospects of the issuer, the short as well as long-term financial health of the issuer. In addition, the Investment Team of the AMC studies the macroeconomic conditions, including the political, economic environment and factors affecting liquidity and interest rates.

Who will manage the Aditya Birla Sun Life Retirement Fund?

Mr Ajay Garg and Mr Pranay Sinha would be the designated Fund Manager of the Scheme.

Mr Ajay Garg holds a bachelors' degree in electronics engineering and is an MBA (Finance) with an overall work experience of 24 years in the financial services industry. He has an overall experience of 24 years in financial services. He is working with the ABSLAMC since January 2003. Prior to this, he worked with Birla Sun Life Securities Ltd.

Currently, at the fund house, some of the schemes which he manages include, Aditya Birla Sun Life Tax Plan, Aditya Birla Sun Life Dual Advantage Fund - Series I, Aditya Birla Sun Life Index Fund, Aditya Birla Sun Life MNC Fund and Aditya Birla Sun Life Tax Relief '96

Mr Pranay Sinha has a B. Tech degree in Aerospace Engineering from IIT Kharagpur and an MBA (in Finance) from IIM Kolkata. He has an overall experience of around 12 years in the financial markets. Prior to joining the fund house, he worked as a Trader - Interest Rates in BNP Paribas Bank for 4+ years. He also worked with Morgan Stanley Investment Management Private Limited and ICICI Prudential Asset Management Company Limited.

Currently at the fund house, the schemes he manages are Aditya Birla Sun Life Equity Hybrid '95 Fund, Aditya Birla Sun Life Government Securities Fund, Aditya Birla Sun Life Dynamic Bond Fund, Aditya Birla Sun Life Gold ETF, Aditya Birla Sun Life Income Fund, Aditya Birla Sun Life Regular Savings, Aditya Birla Sun Life Equity Savings Fund and Aditya Birla Sun Life Active Debt Multi Manager FoF Scheme.

The outlook for Aditya Birla Sunlife Retirement Fund

As mentioned earlier the core objective of the Aditya Birla Sun life Fund is to help investors align their investments as per their retirement needs by offering 4 different portfolio options. Each of the options has varying levels of risk-adjustable returns suitable for individuals in each age bracket. Hence the performance of the fund relies on the efficacy of the fund managers ability to construct each portfolio to handle the risk emanating from it.

1. 30s Plan

   Since the portfolio is skewed majorly towards the equity segment, it has the highest risk and this year is bound to be volatile for equities. it could test the patience of several investors. We are in an election mode in the run-up to Lok Sabha elections in April-May 2019, and surrounded by factors viz. loss in economic momentum, pace of job creation is very slow, farm loan waiver and increased Minimum Support Prices (MSP) may weigh on fiscal deficit, domestic liquidity has been surreal, and people, in general, seem disgruntled after high hopes of Acche Din.

   It is suitable for investors having a retirement time horizon of three decades or more and an appetite for very high-risk appetite.

2. 40s Plan

   This plan has equity along with little exposure to debt portion as well for stability to the portfolio. But, considering the asset allocation limits this plan is associated with high investment risk originating from equities. As mentioned above the fund managers will face a challenging time in the construction of the portfolio. This is because of the year of 2019 volatility.

   Hence this plan option is suitable only for investors who are willing to take high risk and have an investment time horizon of two decades or more years.

3. 50s Plan

   This is suitable for people who seek regular income and have an investment time horizon of 5 years and willing to bare a moderate level of risk. As mentioned, the investments made will be under Government scrips, But the portfolio construction is a challenging task as debt markets too are facing troubled waters.

4. 50s Plus-Debt Plan

   The risk is least as compared to the equity funds and suitable for people who want regular income and have a time horizon of 3 years. As an investor, this is not completely risk-free. Factors such as inflation, the direction of policy rates, currency movement, fiscal deficit, and the consequent impact on yields, plus the ratings assigned to debt papers held in the portfolio, etc. will weigh on the potential performance of the scheme.

   How the fund managers construct the portfolio to deal with the risk that could weigh down the performance remains to be seen. The fortune of the fund will be ultimately linked to the quality of corporate bonds, debt papers and money market instruments held in the overall portfolio.

[Read:  Skip NFOs, Instead Consider Building A Strategic Mutual Fund Portfolio]

PS:   If you want your retirement to be blissful, don't miss out on PersonalFN's Retire Rich service. This is a new and exclusive service with the sole intent of securing your retirement.

 

A DIY (Do It Yourself) retirement solution, whereby you can start planning for your retirement and potentially build a substantial corpus that could sustain you in the golden years of your life.

DISCLOSURE AS PER SECURITIES AND EXCHANGE BOARD OF INDIA (RESEARCH ANALYSTS) REGULATIONS, 2014

About the Company including business activity

Quantum Information Services Private Limited (QIS) was incorporated on December 19, 1989.

QIS was promoted by Mr Ajit Dayal with an objective of providing value-based information/views on news related to equity markets, the economy in general, sector analysis, budget review and various personal products and investments options available to the Public. It was the first company to start equity research on an institutional level.

'PersonalFN' is a service brand of QIS and was started in the year 1999. In 1999, the Company registered the Domain name www.personalfn.com for providing information on mutual funds and personal financial planning, financial markets in general, etc. and services related to financial planning and research in various financial instruments including mutual funds, insurance and fixed income products to customers. It offers asset allocation and researched investment recommendations through its financial planning services.

Quantum Information Services Private Limited (QIS) is registered as Investment Adviser under SEBI (Investment Adviser) Regulations, 2013 and having Registration No.: INA000000680. In terms of the second proviso to Regulation 3 (1) of SEBI (Research Analysts) Regulations, 2014 the Company is not required to obtain Certificate of registration from SEBI.

Disciplinary history

There are no outstanding litigations against the Company, its subsidiaries and its Directors.

Terms and condition on which its offer research report

For the terms and condition for research report click here.

Details of associates

1. Money Simplified Services Private Limited;

2. PersonalFN Insurance Services India Private Limited;

3. Equitymaster Agora Research Private Limited;

4. Common Sense Living Private Limited;

5. Quantum Advisors Private Limited;

6. Quantum Asset Management Company Private Limited;

7. HelpYourNGO.com India Private Limited;

8. HelpYourNGO Foundation;

9. Natural Streets for Performing Arts Foundation;

10. Primary Real Estate Advisors Private Limited;

11. HYNGO India Private Limited;

12. Rahul Goel;

13. I V Subramaniam.

Disclosure with regard to ownership and material conflicts of interest

1. ‘subject company’ is a company on which a buy/sell/hold view or target price is given/changed in this Research Report;

2. Neither QIS, it's Associates, Research Analyst or his/her relative have any financial interest in the subject Company;

3. Neither QIS, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one per cent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report;

4. Neither QIS, it's Associates, Research Analyst or his/her relative has any other material conflict of interest at the time of publication of the research report except that QIS (PersonalFN) is, as per SEBI (Mutual Funds) Regulations 1996, an associate / group Company of Quantum Asset Management Company Private Limited and Trustees and Sponsor of Quantum Mutual Fund (QMF) and to that extent there may be conflict of interest while recommending any schemes of QMF. However, any such recommendation or reference made is based on the standard evaluation and selection process, which applies uniformly for all Mutual Fund Schemes. The payment of commission (upfront / annualized & trail), if any, for any Schemes by QMF to QIS (PersonalFN) is also at arm's length and as per prevailing market practices.

Disclosure with regard to receipt of Compensation
 

1. Neither QIS nor it's Associates have received any compensation from the subject Company in the past twelve months;

2. Neither QIS nor it's Associates have managed or co-managed public offering of securities for the subject Company;

3. Neither QIS nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject Company;

4. Neither QIS nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.

5. Neither QIS nor it's Associates have received any compensation or other benefits from the subject Company or third party in connection with the research report

General disclosure

1. The Research Analyst has not served as an officer, director or employee of the subject Company.

2. QIS or the Research Analyst has not been engaged in market making activity for the subject Company.

Definitions of Terms Used

1. Buy recommendation:This means that the subscriber could consider buying the concerned fund keeping in mind the tenure and objective of the recommendation service.

2. Hold recommendation:This means that the subscriber could consider holding on to the fund until further update. However, additional purchase via ongoing SIP can be considered.

3. Sell recommendation: This means that the subscriber could consider selling the fund keeping in mind the objective of the recommendation service.

Click here to read PersonalFN’s Mutual Fund Rating Methodology

Quantum Information Services Private Limited CIN: U65990MH1989PTC054667 Regd. Office: 103, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021 Corp. Office: 103, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021. Email: info@personalfn.com Website: www.personalfn.com Tel.: 022 61361200 Fax.: 022 61361222

SEBI-registered Investment Adviser. Registration No. INA000000680, SEBI (Investment Advisers) Regulation, 2013

Add Comments