Mumbai, November 11, 2024: Shriram Asset Management Company Limited, part of the Shriram Group, announced that the company will launch Shriram Multi Sector Rotation Fund, the first of its kind in the industry. This new fund aims to give capital appreciation over the medium to long term in an actively managed equity portfolio which rotates across identifiable trending sectors that are performing well. The fund’s strategy is to leverage sector rotation to capture opportunities in outperforming sectors while reducing exposure to underperforming sectors.

Mr. Kartik L Jain, MD & CEO, Shriram Asset Management Company Limited said, “Feedback from advisors indicates that investors often get caught in ‘sector traps’ when they invest in upcoming sectors that are trending due to macro-economic cycles or policy shifts. While their portfolio benefits from the uptrend, they usually remain invested even when the trend reverses or plateaus, due to inertia or behavioural biases. As a result of this, they may end up with lower or even negative annualised returns vs. if they had rotated their sector allocation on time. Shriram Multi Sector Rotation Fund aims to address this investor pain point to help them avoid sector traps and instead, ride sector trends by rotating across sectors in a timely manner. Our catch line ‘Jaisa sector trend, waisa aapka portfolio’ captures this essence. This is also tax efficient for the investor as there is no capital gains tax implication when the fund manager rebalances across sectors within the scheme.”

Mr. Deepak Ramaraju, Sr Fund Manager, Shriram AMC added: “Our two-tier approach of first doing a sector selection based on relative trends, and then doing stock selection, ensures that the fund remains true to label. Sector rotation and stock selection based on our proprietary Enhanced Quantamental Investment framework is also aimed at delivering sustainable alpha to our investors over time.”

Investors can regularly invest in this fund through a Systematic Investment Plans (SIP), top-ups or a Systematic Transfer Plans (STP) from Shriram Overnight Fund to meet their financial and family goals. The minimum investment amount for lumpsum or SIP is ₹500. There is no lock-in period involved. The frequency of SIPs can be weekly, fortnightly, monthly or quarterly. Once a corpus is built up, investors can also set up a Systematic Withdrawal Plan (SWP) at a similar frequency to get regular income. Investors can purchase and manage their investments in all Shriram Mutual Funds online in a secure way via the ShriFunds portal at https://shrifunds.shriramamc.in.

The fund offers the investor the benefit of Long Term Capital Gains tax (LTCG) @12.5% (plus surcharge and cess) if they cross ₹1.25 lakh of capital gains in a fiscal year. If an investor redeems their investment in any sector fund to rebalance their sector allocation, they might face capital gains tax with each transaction. When the fund manager transacts within the scheme, there is no capital gains tax on the scheme. These two aspects make this fund a tax efficient investment option for investors who are looking at exposure to trending sectors.

The Shriram Group was established in 1974 by Padma Bhushan, Mr. R. Thyagarajan (or RT as he is referred), who studied mathematics at undergraduate level, holds a Masters in Mathematics and a Masters in Mathematical Statistics from the prestigious Indian Statistical Institute in Kolkata.

The Shriram Group has been a key player in the Indian financial services sector serving the common man, driving financial empowerment and in the process has evolved as a prominent financial services conglomerate.

The Chair instituted at IISc marks a significant milestone in the Group’s ongoing efforts to contribute to society through academic excellence and research advancements, coinciding with its 50th anniversary celebrations.

Mr. Umesh Revankar, Executive Vice Chairman – Shriram Finance, speaking on the occasion said, “It is our honour and privilege to collaborate with IISc, one of India’s foremost institutions for scientific research and education. In establishing the Shriram Group RT Chair in Computational Mechanics, we aim to foster innovation and advance knowledge in fields that are critical to both academia and industry. The initiative underscores The Shriram Group’s commitment to driving progress through research and contributing to India’s academic landscape.”

The Chair will be awarded to distinguished faculty conducting frontier research in computational mechanics and is aimed at supporting cutting-edge research in computational mechanics, encompassing various fields within mechanical, electrical, electronic, and computational sciences.

The appointed Chair, a distinguished faculty member at the associate or full professor level, will focus on pioneering research that applies computational methods to address real-world challenges. Areas of research may include the development of novel numerical methods, data-driven modeling of physical phenomena, and the exploration of emerging computing paradigms such as quantum computing.

This partnership will not only benefit the academic community but also pave the way for practical applications that address real-world challenges as well as inspire future generations of researchers and professionals to excel in the field of computational mechanics.

The endowment will provide ongoing support for the Chair appointee’s research programs and activities, including the organization of workshops, lecture series, and academic exchanges. It also aims to facilitate collaborative interactions by hosting visiting scholars and experts in the field, further enhancing IISc’s role as a hub for academic and technological excellence.