Aditya Birla Sun Life Mutual Fund

Know Your Fund

This is an open ended thematic equity fund following Special Situations theme where it will follow a bottom-up approach to stock-picking. This fund will take position in companies facing temporary challenges on back of special situation such as corporate restructuring, Government policy change and/or regulatory changes. These Special Situations may be opportunities for those who dare to see it.

The fund is suitable for Long term Equity Investors with High risk appetite with an Investment horizon of 5 years and above.

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Rising in the face of uncertainty

Economies, industries, sectors, and businesses face challenges of dynamic magnitudes at different times. Sometimes, there may be unique opportunities presented by these challenges which can help organisations to emerge stronger in the face of uncertainties.

These challenges presented by special situations may also lead to various investment opportunities as there could be tempora¬ry dislocation in share prices of some companies.



Understanding Special Situations better

Special situation refers to unique challenges that a business, sector or an economy may face. It can affect the entire global or domestic economy or can be limited to a specific industry or company. Special situations may arise from:

  1. 1) Company Specific Events which can impact its growth trajectory

    • Management Change / M&A / Corporate Restructuring

    • Unfavourable macro / business cycle

    • Product line changes / disruptions

  2. 2) Industry Specific Events which can help create/unlock value

    • Disruption due to New Entrant

    • Intense Competition

    • Domino Effect

  1. 3) Macro-Economic Changes which can create opportunity for faster growth

    • Fluctuations in Commodity Prices

    • Inflation

    • Forex Reserves

  2. 4) Regulatory Changes which can affect profits

    • Amendment in Regulationst

    • Govt. Reforms

    • Changes in Tariffs / Taxes



Why invest in this fund now?

  • Potential to deliver reasonable returns: Companies facing special situations could be available at lower valuations than their fair value. The scheme will seek to invest in such companies

  • Unique investing strategy: This scheme’s strategy is to seek out opportunities in adverse times. This scheme can add diversity to your existing portfolio.

  • Managed by expert fund manager: An experienced fund manager who can assess the opportunities and understand its implications will manage the scheme.

  • Applicable to a wide range of situations: While this scheme may seem applicable in current times of a global pandemic, the investing opportunities created by special situations are almost always available. It is only a matter of seeking them out – which is the core of this scheme.


Benefits

Growth Potential

Identify companies which have the potential for growth and scalability in the years to come

Investment discipline

Invest in a portfolio of 35-40 stocks across market caps and different sectors

Market linked returns

Invest in opportunities that arise out of special situations like global economic events.

Expertise

Access to fund managers expertise in stock selection and portfolio management


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Why invest now?

High Uncertainty

The pandemic has resulted in high uncertainty in the business environment.

Development of opportunities

With the changing behaviour and as we adjust to the ‘new normal’, several new trends and companies have emerged in different sectors.

Revision of ratings

The companies whose ratings have suffered due to current lack of demand can expect a boost in their valuations once things return back to normal.