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Kolkata, Sept. 22 The Birla Sun Life Asset Management Company proposes to invest in phases the full cash component of its asset under management (AUM) once the market settles down, according to its Chief Executive Officer, Mr Anil Kumar.

Addressing newspersons at the launch of its first open ended commodity centric fund called Birla Sun Life Commodity Equities Fund here on Monday, Mr Kumar said, “We expect the market to settle down to some extent in three to six months, after which we will increasingly look for different investment opportunities.” The investors’ money in a mutual fund company was meant to be fully invested, he said, adding that the asset management companies were currently holding relatively higher cash components in an effort to hedge against ongoing market volatility.

Out of an average AUM of Rs 38,184 crore, the cash component of Birla Sun Life AMC across different funds currently would be between 12-15 per cent, he observed.

At a time of global financial market downturn, commodity-linked funds were expected to garner higher returns, as there existed a huge demand-supply gap across different commodities such as crude oil, metal and agro products leading to a northward trend in their prices, he pointed out. Such funds would also do well in an inflationary environment over a long-run investment of five to seven years, he observed.

The newly launched commodity linked fund would help in diversifying investments in three options — Global Precious Metal Plan, Global Agri Plan and Global Multi-commodity plan, he said.

Subscription for the fund will be open till October 14, he added.

More Stories on : New Fund Offer | Asset Management Companies | Outlook

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