How is the portfolio of Aditya Birla Sun Life Long Duration Fund constituted?

• • The fund will look to build a high-quality portfolio that includes sovereign G-Secs, State Development Loans, AAA rated Corporate or PSU bonds




• • Its portfolio strategy is modelled around core allocation, tactical allocation, and active duration management

  • o Core allocation – presently allocate between 14-year G-secs and 10-year SDLs

  • o Tactical allocation – increase allocation to 10-year SDLs and AAA bonds when spreads increase or are expected to reduce; to seek optimum returns

  • o Active duration management – basis interest rate scenario the fund shall alter portfolio duration between 7 to 15 years; managing duration risks

Why one can invest in Aditya Birla Sun Life Long Duration Fund?

- High-Quality Long-term portfolio
Gives investors access to a diversified portfolio of sovereign G-secs, SDLs and high-quality AAA rated bonds with long duration. Can be considered as one of the investment avenues for your long-term goals.

-Current market situation can be conducive for long duration funds
Long tenor yields are higher by ~90 bps v/s pre-covid levels and term spreads are at an elevated level which is capturing aggressive future rate hike actions by RBI#.

#Source –Reuters Eikon, Bloomberg, ABSLAMC Research; Data as on July 15, 2022.

-Portfolio strategy that aims looks to optimise investor returns
The fund will seek to take benefit of the term spreads, managing tactical allocation between G-Sec, SDL and AAA Corporate bonds basis their spreads and actively modulate duration with an aim to seek optimum risk-adjusted returns for investors.

-Tax Efficient returns
Investments held for more than 3 years qualify for long term capital gain(LTCG) taxability on redemption. LTCG are taxed at 20% after giving the benefit of indexation.

-Low minimums and with high liquidity
Investors can invest with as little as Rs. 100/- and in multiples of Re. 1/- thereafter. Being an open ended fund, there is no lock-in nor any exit load; giving high liquidity to investors.

For more information on the scheme, please refer to SID/KIM of the scheme.