Bangalore: Aditya Birla Sun Life AMC Limited (ABSLAMC), a subsidiary of Aditya Birla Capital Limited and investment manager for Aditya Birla Sun Life Mutual Fund, collected nearly Rs 200 crore for its Aditya Birla Sun Life US Treasury Bond ETFs Fund of Funds NFO from 16th October 2023 to 30th October 2023.
Aditya Birla Sun Life US Treasury 1-3 Year Bond ETFs Fund of Funds is suitable for investors with shorter investment horizon and who have a relatively conservative risk profile. Aditya Birla Sun Life US Treasury 3-10 Year Bond ETFs Fund of Funds is suitable for investors with long term investment horizon and who have a higher risk profile. The benefits of investing in these instruments include locking in multi decade high yields for long-term, adding duration to portfolio and an opportunity to earn capital gains.
Notably, when investing through Indian mutual fund schemes, the exposure is not treated as an overseas investment under the Liberalised Remittance Scheme (LRS) and there is no limit to investment value along with non-applicability of Tax Collected at Source (TCS) that makes this a compelling investment option. It also creates a currency hedge i.e. protects against INR depreciation. Lastly, asset class and geographical diversification can also be achieved by investing in these funds.
As per the current regulatory provisions, Mutual Funds can make overseas investments in Exchange Traded Fund (ETF(s)) subject to a maximum of US $ 300 million per Mutual Fund, within the overall industry limit of US $ 1 billion.
Commenting on US Treasury fund of funds NFO collection, A. Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC Ltd, said, "I am happy to share that almost 7000 investors have capitalized on this unique opportunity and invested in Aditya Birla Sun Life US Treasury Bond ETFs Fund of Funds NFO. At ABSLAMC we believe the Federal Reserve is unlikely to hike rates going forward and any increase in yields should be looked upon as an opportunity to buy US treasuries as rate cuts to start from end of next year or early 2025. I firmly believe this passive offering is an excellent tactical opportunity to diversify your investments in US denominated assets. Both funds are open for continuous investment being part of the open-ended product suite."