Description

Aditya Birla Sun Life India GenNext Fund renamed to Aditya Birla Sun Life Consumption Fund with updated asset allocation and portfolio rebalancing guidelines.

Summary

Aditya Birla Sun Life AMC Limited has announced a fundamental change to one of its mutual fund schemes effective July 28, 2025. The Aditya Birla Sun Life India GenNext Fund will be renamed to Aditya Birla Sun Life Consumption Fund, accompanied by updated portfolio rebalancing guidelines and asset allocation parameters.

Key Points

  • Scheme name changed from “Aditya Birla Sun Life India GenNext Fund” to “Aditya Birla Sun Life Consumption Fund”
  • Asset allocation remains: 80-100% in equity and equity-related instruments, 0-20% in fixed income securities
  • Updated portfolio rebalancing guidelines for short-term defensive considerations and passive breaches
  • Securities lending limited to 20% of net assets with maximum 5% to single intermediary
  • Derivatives exposure up to 50% of net assets permitted

Regulatory Changes

  • New rebalancing timeline of 30 calendar days for short-term defensive deviations as per SEBI Master Circular dated June 27, 2024
  • Passive breach rebalancing within 30 business days, extendable to 60 business days with Investment Committee approval
  • Enhanced reporting and disclosure requirements for non-compliance with rebalancing timelines

Compliance Requirements

  • Fund manager must rebalance portfolio within specified timelines
  • Written justification required if rebalancing not completed within 30 business days
  • Investment Committee review and approval needed for timeline extensions
  • Compliance with SEBI Master Circular provisions on mutual funds

Important Dates

  • Effective Date: Monday, July 28, 2025
  • Rebalancing timeline: 30 calendar days for defensive considerations
  • Passive breach rebalancing: 30 business days (extendable to 60 business days)

Impact Assessment

The scheme name change and updated guidelines primarily affect existing investors in the fund and BSE StAR MF platform operations. The changes align with current SEBI regulations and provide clearer framework for portfolio management. Impact is moderate as it involves procedural updates rather than fundamental investment strategy changes.

Impact Justification

Scheme name change affects mutual fund investors and BSE platform operations but has limited broader market impact