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, in which the unitholders can opt to transfer variable amounts from a source scheme to a target scheme, at defined intervals.
According to the fund house, the variable or actual amount of transfer to the target scheme via the turbo STP 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.
“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,” said A Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC.