The Shriram Multi Asset Allocation Fund was introduced today, August 18, 2023, by Shriram Asset Management Company, a member of the Shriram Group. This new fund seeks to provide long-term wealth growth that is inflation-adjusted by exposing investors to a variety of assets, including stock, debt, and gold/silver ETFs. On September 1st, 2023, the New Fund Offer (NFO) will come to an end.
A two-tiered strategy is used by the Shriram Multi Asset Allocation Fund to produce higher risk-adjusted returns. First, its “risk parity” strategy across equities, debt, and gold strives to reduce volatility and maximize returns, providing investors with greater returns. Secondly, our patented Enhanced Quantamental Investment (EQI) methodology creates a risk-adjusted equities portfolio with the goal of consistently delivering alpha (returns above the benchmark) by integrating quantitative and fundamental analyses. We employ three variables: low volatility (stable returns), momentum (growing returns), and low valuation (at the correct price). Both back testing and forward testing have shown excellent outcomes when using these variables. We think our investors will find this particular fund appealing. Shriram Asset Management Company’s MD and CEO, Kartik L. Jain, remarked.
The fund’s corpus would consist of between 65% and 80% equity investments, including 30 to 40 stocks from Shriram AMC’s Enhanced Quantamental Investment (EQI) model. A further 10% to 25% of funds would be invested in high-quality (AAA) short- to medium-term debt, preferably in government and government-backed securities to reduce credit risk. A further 10% to 25% of funds would be invested in gold/silver ETFs, with an option to invest up to 10% in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).
To achieve their financial and family goals, investors can consistently invest in this fund using Systematic Investment Plans (SIP), top-ups, or Systematic Transfer Plans (STP) from liquid or overnight funds. The minimum investment amount is $5,000 for lump sum investments and $1,000 per month or $3,000 per quarter for SIPs. There isn’t a lock-in time necessary.
Last year, Shriram Group revitalized its mutual fund business by partnering with Mission1 Investments LLC, a US-based company. By doing this, Shriram AMC has broadened the range of products it offers, giving its clients access to pertinent and distinctive investment options. To lay the groundwork for long-term success, the AMC is concentrating on “Performance, Products, and Placement.”
