Shriram Equity & Debt Opportunity Fund
Asset allocation is a significant element of financial planning. Depending on the performance and risk level of different asset classes, it becomes difficult for investor to decide how to distribute funds. One needs to constantly keep an eye on macro-economic factors and forecast to evaluate and analyze the right time to have a portfolio mix. This is how and where asset allocation-oriented mutual funds come in.
Shriram Equity and Debt Opportunities Fund
Shriram Equity and Debt Oriented Fund is an open ended equity oriented asset allocation scheme. Depending on the outlook of the market, with this scheme you can move across equity, debt or cash. By taking bets on the relative valuation of different assets, the scheme seeks to create superior risk adjusted return. The scheme was launched on 8th November 2013 and re-opened for ongoing sale & repurchase on 6th December 2013.
What is the suitability of this scheme?
This scheme is beneficial for investors who have an aim to build long term wealth within 3-5 years. The minimum amount is Rs.5000.00 for lump sum investment and therein multiples of Re.1. Minimum investment for monthly SIP amount is Rs 1000 per month.
What is the Fund management process & investing style?
The fund has robust investment process which encloses profitability, business attractiveness, competitive positioning, balance sheet strength, management track record, corporate governance, valuations etc. This investment type follows a combination of top down and bottom up approach. For example, the AMC uses top down approach to focus on a particular industry which it believes will likely outperform. Once the sector is decided, it uses bottom up approach to finalize the company which will give better value for money.
How did the scheme perform?
The Fund has so far declared 24.5% dividend since launch.
Who is the Fund Manager?
The Fund is managed by Mr Partha Ray who is an alumnus of IIT, Kharagpur and IIM, Bangalore with more than 20 years’ experience in the banking industry. While focusing on quality stocks, the scheme has performed well.