Description

Aditya Birla Sun Life India GenNext Fund is being renamed to Aditya Birla Sun Life Consumption Fund with updated portfolio rebalancing rules effective July 28, 2025.

Summary

Aditya Birla Sun Life AMC Limited has announced the change in fundamental attributes of Aditya Birla Sun Life India GenNext Fund, including a name change to Aditya Birla Sun Life Consumption Fund. The changes are effective from Monday, July 28, 2025, and include updated portfolio rebalancing provisions in accordance with SEBI Master Circular on Mutual Funds dated June 27, 2024.

Key Points

  • Scheme name changed from “Aditya Birla Sun Life India GenNext Fund” to “Aditya Birla Sun Life Consumption Fund”
  • Asset allocation remains unchanged: 80-100% in equity and equity-related instruments, 0-20% in fixed income securities
  • Updated portfolio rebalancing rules for both short-term defensive considerations and passive breaches
  • Changes approved by Aditya Birla Sun Life Trustee Private Limited
  • Compliance with SEBI (Mutual Funds) Regulations 1996, Regulation 18(15A) and 25(26)

Regulatory Changes

Portfolio Rebalancing for Short Term Defensive Consideration:

  • AMC may invest beyond asset allocation range due to market conditions
  • Deviations normally for short-term and defensive considerations
  • Portfolio must be rebalanced within 30 calendar days from deviation date

Rebalancing for Passive Breach:

  • In case of deviation due to passive breaches (not arising from AMC’s omission/commission)
  • Portfolio must be rebalanced within 30 Business Days
  • If not rebalanced within 30 Business Days, written justification required before Investment Committee
  • Investment Committee can extend timeline up to 60 Business Days
  • Failure to rebalance within extended timeline requires compliance with prescribed restrictions and disclosure requirements

Compliance Requirements

  • AMC must maintain asset allocation within specified ranges
  • Compliance with SEBI Master Circular on Mutual Funds dated June 27, 2024
  • Written justification and Investment Committee approval required for extended rebalancing periods
  • Reporting and disclosure requirements as specified in para 2.9 of SEBI Master Circular

Important Dates

  • Effective Date: Monday, July 28, 2025
  • Rebalancing Timeline: 30 calendar days for defensive considerations, 30 Business Days for passive breaches
  • Extended Timeline: Up to 60 Business Days with Investment Committee approval

Impact Assessment

The scheme name change and updated rebalancing provisions primarily affect existing investors in the fund. While the core investment strategy and asset allocation remain unchanged, the enhanced rebalancing framework provides more structured approach to portfolio management during market volatility. Investors should be aware of the new scheme name for all future transactions and communications.

Impact Justification

Medium impact as it affects existing mutual fund investors but is primarily a nomenclature change with some operational updates