Mutual Fund: Shriram AMC launches Shriram multi-asset allocation fund for long-term wealth creation. Key things to know

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Asset Management Company, part of the Shriram Group, launched the Shriram Multi Asset Allocation Fund today, August 18th, 2023. This new fund aims to offer long-term inflation-adjusted wealth creation through exposure to multiple assets such as equity, debt, and gold/silver ETFs. The New Fund Offer (NFO) will close on September 1st, 2023.

“The Shriram Multi Asset Allocation Fund has a two-tier approach to delivering superior risk-adjusted returns. Firstly, its ‘risk parity’ approach between equity/debt/gold aims to minimise volatility and maximise returns, thereby giving better returns to the investor. Secondly, for the equity allocation, our proprietary Enhanced Quantamental Investment (EQI) model uses an integrated combination of quant and fundamental analysis to create a risk-adjusted equity portfolio that aims to deliver consistent alpha (returns above the benchmark).

We use three factors: low volatility (steady returns), momentum (increasing returns), and low valuation (at the right price) which has shown very positive results in both back testing as well as forward testing. We believe this one fund will appeal well to our investors," Kartik L Jain, MD & CEO, Shriram Asset Management Company said. Between 65% to 80% of the fund’s corpus will be invested in equity, which includes 30 to 40 stocks from Shriram AMC’s proprietary Enhanced Quantamental Investment (EQI) model.