Aditya Birla Sun Life Mutual Fund launches Turbo Systematic Transfer Plan (STP)

  • Turbo STP is a facility which enables unitholders to transfer variable amounts from a source scheme to a target scheme at defined intervals
  • Turbo STP helps invest more when market valuation is attractive and less when market valuation turns expensive to optimize the investment growth potential
  • Turbo STP will be available in weekly, monthly and quarterly intervals

Bangalore, 15th September: Aditya Birla Sun Life AMC Limited, a subsidiary of Aditya Birla Capital Limited, an investment manager to Aditya Birla Sun Life Mutual Fund has announced the launch of Aditya Birla Sun Life Turbo Systematic Transfer Plan (Turbo STP). It is a facility, wherein unit holders 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 like 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.

Commenting on the launch, Mr A. Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC Limited said, “Turbo STP is a facility for those market participants having lumpsum 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.”

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Date – 1st day, Frequency – Monthly

Base installment amount (x) – Rs 10,000/-

Number of installments – Default

Multiplier Range – 0.2x to 5x

  1. If latest EVM is 0.72, the matrix defines transfer of 0.2x of base installment amount i.e. Rs 2,000/- will be transferred to target scheme from source scheme.
  2. If latest EVM is 1.31, the matrix defines transfer of 3.66x of base installment amount i.e. Rs 36,600/- will be transferred to target scheme from source scheme.
EVM Multiplier Turbo STP (Rs 10,000 * Multiplier)
0.72 0.2 2,000
0.94 1.1 11,000
1.31 3.66 36,600

Source: ABSL AMC Internal Research

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