Birla Sun Life MF launches long-term fund

Chandigarh, Aug 10: Birla Sun Life Mutual Fund today announced the launch of a long term equity fund, Birla Long Term Advantage Fund.

This five-year closed-ended equity fund is particularly aimed at investors who want to maximise returns without being worried over volatile stock markets, Company National Head (Sales and Distribution) Ravi Sharma said here.

Mr Sharma said the fund would provide long-term capital appreciation by investing predominanity in diversified portfolio of equity and equity related securities, a portfolio of reasonably priced stocks that are expected to post attractive growth in three to five years.

The fund would use derivatives to the extent of 50 per cent of the portfolio AUM and would create hedges during volatile times.

Derivatives, when used for hedging, could aid to reduce the volatility of the portflio. Therefore investors could benefit from the same level of returns but at a reduced level of risk, he added.

Mr Sharma said, ''When one is investing in a long-term five-year closed ended fund, the intervening volatility of the stock markets does not impact as long as the markets perform over the five-year horizon.'' Moreover, in an upward trending market, investing in a closed-ended fund prevents one from encashing too early and thereby miss the larger rally.

With a large team of equity analysts and fund managers, long experience of over 11 years in equity funds management, Birla Mututal Fund is ideally placed to manage a long term closed ended equity fund, he said.

UNI