Description

Recategorization of Fund of Fund schemes under new SEBI framework with scheme name and feature changes effective August 31, 2025.

Summary

Aditya Birla Sun Life Mutual Fund has announced the recategorization of Fund of Fund (FoF) schemes under the new SEBI framework effective August 31, 2025. The primary change involves renaming “Aditya Birla Sun Life Asset Allocator FOF” to “Aditya Birla Sun Life Multi-Asset Omni FOF” along with updates to investment objectives and asset allocation parameters.

Key Points

  • Scheme name changed from “Asset Allocator FOF” to “Multi-Asset Omni FOF”
  • Category changed from “Hybrid FOF (Domestic)” to “Multi Asset Allocation FOF”
  • Investment scope expanded to include commodities-based schemes
  • Maintains 95-100% allocation to main investment instruments
  • Foreign securities exposure remains up to 35% of total portfolio
  • No investment in derivatives, securitized debt, or short selling

Regulatory Changes

Implementation of SEBI Letter no. SEBI/HO/IMD/IMD-RAC-1/P/OW/2025/4102/1 dated February 6, 2025, regarding “Framework for launching of Fund of Fund (FoF) schemes with multiple underlying funds” as revised on June 30, 2025.

Compliance Requirements

  • Scheme features aligned with new SEBI framework requirements
  • Updated Scheme Information Document (SID) and Key Information Memorandum (KIM)
  • Investment allocation parameters modified to include commodities exposure
  • Product labelling updated to reflect broader investment mandate

Important Dates

  • Effective Date: August 31, 2025 (Sunday)
  • SEBI Framework Date: February 6, 2025 (original), June 30, 2025 (revised)

Impact Assessment

The recategorization affects existing investors in the Asset Allocator FOF scheme who will now hold units in the renamed Multi-Asset Omni FOF. The changes expand investment opportunities by including commodities-based schemes while maintaining the core equity and debt allocation structure. Impact is moderate as the fundamental investment approach remains similar with enhanced diversification options.

Impact Justification

Affects existing mutual fund investors but is primarily administrative recategorization