There’s a strong chance that most armchair investors missed the bust-and-boom in the stock market caused by the pandemic. Such left-field opportunities are precisely what the Aditya Birla Sun Life Special Opportunities Fund claims to leverage to deliver returns. The new fund offer runs from 5–19 October, and here’s what it’s all about.
Investment Objective
The scheme aims to provide long-term capital appreciation by investing in opportunities presented by special situations such as:
- Corporate restructuring, e.g. Reliance Industries shifting focus from energy to IT with Jio
- Government policy/regulatory change, e.g. strategic divestment in companies which is traditionally believed to ‘unlock’ a public sector company’s value.
- Companies going through temporary but unique challenges, e.g. fall in crude oil prices reduced raw materials costs for paint companies, which boosted their profitability.
- Other instances, e.g. global financial crises cause markets across countries to crash. During such times, stock prices of even companies with strong fundamentals drop below their ‘true ’value, making them good investment opportunities.
Please note that the scheme does not guarantee/indicate any returns. There can be no assurance that the schemes’ objectives will be achieved. Further, the sectors mentioned in the explanation are for understandability and are not investment advice.
The fund aims to invest in a focussed portfolio of 35-40 stocks. The portfolio will follow a “price-target approach” to derive value from tactical opportunities arising due to special situations, such as the ones mentioned above, that companies could face.
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| Instrument | Indicative Allocations (% of total assets) | Risk Profile | |
| Minimum | Maximum | ||
| Equity & Equity related instruments of companies following Environmental, Social and Governance (ESG) criteria | 80 | 100 | High |
| Other equity and equity-related instruments | 0 | 20 | High |
| Debt, units of mutual fund schemes, money market instruments and cash and cash equivalents | 0 | 20 | Low to medium |
| Units issued by REITs and INVITs | 0 | 10 | Medium to high |
Scheme details
| Name | Aditya Birla Sun Life Special Opportunities Fund |
| Type | Open-ended equity scheme following special situations theme |
| Category | Equity-based mutual fund |
| Investment objective | To provide long term capital appreciation by investing in opportunities presented by special situations such as corporate restructuring, government policy change and/or regulatory changes, and companies going through temporary but unique challenges. |
| Benchmark | S&P BSE 500 Total Return Index (TRI)^ |
| Entry/Exit Load |
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| Fund managers |
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| Plans | Regular and Direct |
| Options (under each plan) | Growth & dividend |
| Minimum application amount | ₹500/- and in multiples of ₹1/- thereafter |
| Additional application amount | ₹500/- and in multiples of ₹1/- thereafter |
^S&P BSE 500 index is a free-float weighted index that represents nearly 93% of the total market capitalization on BSE India exchange. This index represents all 20 major industries of the economy.
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*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Note: The above information has been sourced from the Scheme Information Document provided by Aditya Birla Sun Life AMC Limited. To read the entire document, click here.
Disclaimer RKSV Securities India Private Limited (ARN/Distributor - 107930; brand name Upstox) is the distributor of the mutual fund. Please consult your investment advisor before investing.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.