One fixed maturity plan, one multi-asset allocation fund launched today: Should you invest?

February 7 marks the opening of two New Fund Offers (NFOs) for investment— Aditya Birla Sun Life Fixed Maturity Plan – Series UT (91 days) and Bank of India Multi Asset Allocation Fund.

Each of these funds offers unique features catering to different investor preferences.

While Aditya Birla Sun Life Fixed Maturity Plan – Series UT (91 days) is a close-ended debt scheme, the Bank of India Multi Asset Allocation Fund is an open-ended multi-asset allocation fund.

NFOs in detail

Aditya Birla Sun Life Fixed Maturity Plan – Series UT (91 days)

The scheme aims to generate income by investing in fixed-income securities maturing within its 91-day tenure. It carries relatively low-interest rate risk and moderate credit risk.

The scheme has a fixed tenure of 91 days, with no redemption or repurchase allowed before maturity. However, units will be listed on the NSE and other recognised stock exchanges for potential secondary market transactions.

Investors can participate with a minimum of ₹1,000 and in multiples of ₹10 thereafter during the New Fund Offer (NFO) period.

Bank of India Multi Asset Allocation Fund

This fund, managed by Bank of India Mutual Fund, seeks long-term capital growth by investing in equity, debt, and gold. The asset allocation strategy comprises equity (35-40%), debt and money market instruments (45-55%), gold ETF (10-15%), and up to 10% in REITs and InvITs.

The NFO is open for subscription from February 07, 2024, to February 21, 2024.

Investors gain exposure to three asset classes—equity, debt, and gold, providing a diversified portfolio. The fund offers a mix of stocks, bonds, and REITs & InvITs, aiming for stable returns, the mutual fund house said in a statement.

Mohit Bhatia, CEO of Bank of India Investment Managers, emphasised the fund’s competence in managing asset allocation, offering stability through debt allocation and growth through equity and gold.