Shriram Asset Management Company, a key player in the Shriram Group conglomerate, unveiled its latest financial product, the Shriram Multi Asset Allocation Fund, today. it is to be available until September 1st, 2023, the fund is designed for long-term, inflation-resistant wealth accumulation by investing in a diversified portfolio including equity, debt, and gold/silver ETFs.
Kartik L Jain, MD & CEO of Shriram Asset Management, highlighted the fund’s two-pronged approach. “First, the ‘risk parity’ strategy aims to evenly spread risk across asset classes like equity, debt, and gold to reduce volatility and enhance returns. Secondly, the equity portion of the fund leverages our unique Enhanced Quantamental Investment (EQI) model, combining quantitative and fundamental metrics. The model focuses on three factors: consistent performance, increasing returns, and market-friendly valuation.”
Breaking down the asset allocation, the fund will invest 65-80% in equities, specifically handpicked from Shriram AMC’s proprietary EQI model, which comprises 30 to 40 stocks. Additionally, 10-25% will be allocated to high-grade (AAA) short-to-medium-term debt, mainly in government and government-backed securities to mitigate credit risk. The fund also allocates 10-25% to gold and silver ETFs, and offers the flexibility to invest up to 10% in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
Investment routes are quite flexible as well. Individuals can contribute through Systematic Investment Plans (SIP), one-time investments, or via Systematic Transfer Plans (STP) from liquid or overnight funds. The minimal investment is ₹5,000, whereas for SIPs, the minimum is ₹1,000 per month or ₹3,000 quarterly. Notably, there is no lock-in period for this fund.
This new fund adds to Shriram AMC’s refreshed portfolio, significantly elevated since last year when it partnered with US-based Mission1 Investments LLC. This strategic collaboration has enabled Shriram AMC to broaden its offerings, in line with its focus on ‘Performance, Products, and Placement,’ thereby laying a solid groundwork for long-term growth.
As seen in the case of global asset management firms like BlackRock, multi-asset funds have gained considerable attention for their risk-diversification benefits. Shriram’s entry into this segment could be a game-changer in the Indian mutual fund market.