Aditya Birla Sun Life Frontline Equity Fund: Fund review

The best way to dodge the market risk is to make investments in the decade-old schemes. Talking about the mutual funds that have witnessed various market cycles, Aditya Birla SL Frontline Equity has etched its name in the list for serving over a decade.

The rich experience of 13 years has helped Birla Sun Life Mutual Fund to keep up a stable image averting financial risks. As the company only identifies stable stock for improving returns, the investor can regard it as one of the safest options. Limiting the drawbacks of the falling market, this scheme is established compared to its competitors.

Read further to understand why you should invest in this equity mutual fund and increase long-term wealth.

Birla Sun Life Mutual Fund: Overview

Birla Sun Life mutual fund online is ideal for long-term growth. It is an open-ended equity scheme offering minimum investment of Rs.1000. Mr Mahesh Patil, the fund manager who has been managing this since almost 13 years, also indicates the objective of generating income and distributing a dividend.

The investments are in equity-linked securities and equity. Additionally, they are expanded over different sectors aligning with the benchmark index.

Birla Sun Life fund scheme aims at maintaining industry exposure within ±30 comparative to benchmark or actual ±5, whichever is better of the industrial volume in the benchmark index. Stock concentration limits and good market cap exposure are also prevalent to maintain a disciplined and diversified strategy.

Key Features of Birla Sun Life Mutual Fund

The long record of Birla Sun Life mutual fund performance is good news to the investors. Targeting wealth creation through an investment portfolio, the fund carefully invests in the leading companies of the country. This mutual fund ventures to announce standard dividends under the dividend choice.

Also, the large cap-tilt does not appear as an issue to the Aditya Birla SL mutual fund performance because the fund manager has the scope of selecting winners out of S&P BSE 200. For the years, the scheme has been able to manage large cap allotment around 80% or higher since the beginning.

Therefore, if you wish to achieve surplus returns beyond the benchmark through the blend of the bottom-up and top-down method of investment, Aditya Birla Sun Life Frontline Equity is the one. It also performs beyond the benchmark around the market cycle.

Who should invest in Aditya Birla SL Frontline Equity?

If you want to diversify the investment all over the blue-chip stocks in various market leaders of the respective sectors, Birla Sun Life mutual fund is the one. The centre of the investment is stability along with high returns. When the conservative investors wish to take risk assessing the fund and its minute exposure to mind and small-cap companies, the mutual fund will not disappoint them.

Now should you invest in Birla Sun Life Mutual Fund?

One of the main reasons of Birla SL mutual fund to outshine the peers is its brilliant performance. Birla SL large-cap fund performed better than the benchmark and its rivals for thirteen years straight. However, in 2017, one of the best equity mutual funds has faced setbacks and passed marginally. Needless to say, the fund has secured four to five-star rating continuously for a decade.

In the last five and ten years, the scheme has offered 17% and 15% returns while the benchmark has only been able to provide 14% and 11% returns in the respective years. The recent results indicate that Birla Sun Life mutual fund has taken its diversification to the next level by investing in IT sectors, financials and FMCG.

The present market trend influences to remain invested with the established, proven and large scheme makers. In this way, it becomes easier to avert the macro challenges including economical and sectoral ones.

During ups and downs of the market, it is wise to choose a scheme having a portfolio aimed at large-caps. The size of an equity mutual fund is essential; especially, when the investor looks out for redemption. In any case, Aditya Birla Sun Life mutual fund fits perfectly.

Aditya Birla Sun Life Frontline Equity Fund: Analysis

As Birla Sun Life mutual fund benchmarked its own performance to BSE 200 index, it is now fixing its sectoral weight and stock choice to the index. The fund does not choose stocks out of the index.

Nevertheless, the new categorisation rule imposed by SEBI has led the fund to be classified as a complete large-cap fund. Market capitalisation chooses the portfolio among the top 100 stocks. Keep in mind that the 80% allocation to the stocks is mandatory and Nifty50 has become the new benchmark.

The changes do not threaten any alteration of the Birla SL mutual fund character but the fund manager is required to focus on a limited universe in case of the stock selection. Growth at an affordable price - this approach is not affected by the new rules.

The manoeuvrability of this large-cap mutual fund is not influenced and the impeccable performance has resulted in the asset size of Rs.20,000 crore. The equity fund is in the hold of 70-80 stocks in the portfolio for managing an absolute diversified profile. Thanks to the balanced fund management team, the result of continuous flow and large market cap bias has been prevalent over a decade.

Additionally, you have the choice to move the investment in a scheme before completing one year from the inception period. During this time, exit load of 1% is applied on best equity mutual funds. The tax exemption benefit under Section 80C of the Income Tax Act is available. Tax-deductible is also applicable when there is up to 15% of gained profit.

Last Minute Takeaway

As it takes care of the downside, the investor can rely on the fund for five years minimum and take benefit out of the fund manager’s stock-selection. The stable and consistent fund management makes sure that the stock-selection continues while boosting the growth. Without a doubt, Aditya Birla offers the best equity mutual fund which cushions against the sudden fallings of the market.