Aditya Birla Sun Life AMC Ltd has announced the launch of turbo systematic transfer plan (STP), wherein unitholders can opt to transfer variable amounts from a source scheme to a target scheme, at defined intervals.
In Turbo STP, the variable or actual amount of transfer to the target scheme will be determined based on the results from an in-house model, which helps ascertain market valuation.
The model tracks technical and fundamental parameters such as valuation ratios, trend ratios and volatility ratios, to arrive at an equity valuation multiplier (EVM). This value helps determine the actual amount to be transferred based on the pre-selected STP base amount.
Turbo STP enables unitholders to transfer variable amounts from a source scheme to a target scheme at defined intervals. It also helps invest more when market valuation is attractive and less when market valuation turns expensive to optimize the investment growth potential.
The facility will be available in weekly, monthly and quarterly intervals.
Commenting on the launch, A. Balasubramanian, managing director and CEO, Aditya Birla Sun Life AMC, said, “Turbo STP is a facility for those market participants having lump sum amount to invest and are confronted with issues regarding market valuations, whether they are alluring or costly, and the amount they ought to contribute and for what tenure. It will help invest more at attractive market valuation levels and less when valuations are expensive.”
Date – 1st day, Frequency – Monthly
Base installment amount (x) – Rs 10,000/-
Number of installments – Default
Multiplier Range – 0.2x to 5x
If the latest EVM is 0.72, the matrix defines transfer of 0.2 times of base installment amount i.e. Rs 2,000 will be transferred to target scheme from source scheme.
If the latest EVM is 1.31, the matrix defines transfer of 3.66 timers of base installment amount i.e. Rs 36,600 will be transferred to target scheme from source scheme.
ABSL AMC services around 8.1 million investor folios with a pan India presence across 280 plus locations and had more than Rs 2.93 trillion worth of assets under management (AUM) as of 30 June under its suite of mutual funds (excluding our domestic FoFs), portfolio management services, offshore and real estate offerings.