The fund focussed on special opportunities emerging from special situations such as corporate restructuring, management change, tech disruptions, Atmanirbhar Bharat etc.
The minimum application amount for this fund is Rs.500 during the New Fund Offer period.
Aditya Birla Sun Life AMC has launched Aditya Birla Sun Life Special Opportunities Fund, an open-ended equity scheme following a theme of the special situation. Every economy, industry or business faces unique developments and challenges at various points in time. These events result in what can be called exceptional market scenarios or special situations, and those companies and businesses that navigate and thrive through these are the special opportunities that the market offers.
In a way, special opportunities is an evergreen theme because it is always part of the market. These events usually coincide with a significant dislocation in the price of these stocks, creating special investing opportunities. They are usually available at lower valuations than their fair value which provides a good margin of safety. Aditya Birla Sun Life Special Opportunities Fund looks to spot these very opportunities and will be managed by Senior Fund Manager Anil Shah who brings with him nearly three decades of experience in equity research and investments. The fund management team also includes Chanchal Khandelwal and Vinod Bhat.
Events like change in management, business restructuring, merger & acquisitions, Government policy change, regulatory changes, disruption due to a new entrant, macro-economic changes, regulatory changes, geo-political developments, global events etc., can create these special opportunities of investment.
It is a wide range of possibilities and the Fund is well-positioned to play these themes and special opportunities emerging in recent times from things like Atmanirbhar Bharat, COVID led Disruptions, massive Digital Adoption, Government’s Disinvestment plans, Changes in Lifestyle and Consumption patterns, solid Technology upgrade, and others.
The NFO opens on October 05, 2020 and closes on October 19, 2020. The minimum application amount for this fund is Rs.500 during the New Fund Offer period. Investors can come into this fund both in the SIP or Lumpsum route.
About the Fund
Bottom-up approach of stock selection based on the size of the opportunity, the margin of safety and potential of growth, scalability, and return on equity.
Fund focussed on special opportunities emerging from special situations such as corporate restructuring, management change, geopolitical developments, tech disruptions, digital wave, disinvestment drive, change in consumer preference, COVID led disruptions, Atmanirbhar Bharat etc.
Portfolio will be sector and market cap agnostic and can also invest in international opportunities pertaining to special situations.
Commenting on the new fund, A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC Limited said: “Markets have a way of offering special opportunities to stock pickers. Sometimes it will favour growth companies and sometimes value companies. In times of uncertainty, even good companies get impacted due to some reason or the other. Money managers have to look at the hidden value that can be unlocked from these companies in times ahead. These opportunities backed by good managements enhance the probability of success of these companies. An avid stock picker will be on the lookout for these kinds of potential opportunities. This fund will be run by a team that has immense experience in identifying and investing in such opportunities and have a track record of identifying trends early on. We are already in a special situation market due to the unprecedented nature of the times we are in. We believe that the time is just right to benefit from many special opportunities that exist today in terms of new emerging trends, existing businesses adapting and evolving, and a big consolidation in many industries that is underway”.
The fund will seek to have a focused portfolio through a bottom-up approach of stock selection based on the size of the opportunity, prospects of future growth and scalability, the potential of growth in return on equity, and margin of safety. The portfolio will be sector and market cap agnostic. The fund can also invest up to 25% of the corpus in international opportunities pertaining to special situations.
“In addition, there is abundant liquidity which is favourable for equity markets, make this the perfect time to look for these opportunities and come into this fund with an investment horizon of five years or more”, adds Balasubramanian.