Aditya Birla Sun Life Frontline Equity Fund is a prominent large-cap fund which has assets under management of more than Rs 20,000 crore. The gigantic AUM is a result of strong trust it has built over a long period of time by providing consisting and stable returns. It has fulfilled the goals of a majority of investors and continues to perform well in the current market scenario as well. It is provided by Aditya Birla Sun Life Mutual Fund which is one of the prominent mutual fund companies in India.
About the Fund
It has performed well in the pleasant as well as unfavourable market conditions and has beaten its benchmark in terms of rolling returns and absolute returns most of the times. It has provided an annualised return of 21.44% since inception in August 2002, which is much above the category’s average and benchmark. Being a large-cap fund, it has been able to generate the above-expected returns. The fund aims to deliver long-term capital appreciation by investing in large-cap companies which have strong fundamentals and are experienced to weather the unwanted volatility.
It has generated an annualised return of 14.63% in last 10 years which also includes the bear markets of 2008 and 2011. In the last 5 years, it has generated 17.74% returns. The category average returns of the last 5 and 10 years are 14.92% and 11.28% respectively while the benchmark was even lower. It has fulfilled the long-term goal of capital appreciation and enhancement in regular income. It races with the benchmark NIFTY 50 TRI. (data as of 25th July 2018)
The fund is managed by Mr Mahesh Patil. He is the senior fund manager at Aditya Birla Sun Life Mutual Fund. He has been operating the scheme since November 2005. He is highly experienced and qualified for the post of fund manager as he has previously worked with Reliance Infocom Ltd, Motilal Oswal Securities, and Parag Parikh Financial Advisory Services Ltd. He is a B.E. In Electrical, and MMS in Finance and Chartered Financial Accountant from ICFAI Hyderabad. He manages various schemes at Aditya Birla Sun Life Mutual Fund including, Aditya Birla Sun Life Pure Value Fund, Aditya Birla Sun Life Focused Equity Fund, Aditya Birla Sun Life Equity Hybrid ‘95 Fund.
Portfolio of the Fund
The fund manager follows the growth style of investment and targets the stocks which possess good fundamentals and are expected to perform well after running in-depth research through the company. In general, he targets banking and finance sector companies up to a great extent. The banking and finance companies occupy 34% of the corpus as they promise a stable growth in the current equity market. The fund manager also influences Technology, automotive oil & gas, engineering, and metals sectors. HDFC Bank, Infosys, ICICI Bank, and ITC are the top holders of the fund.
The fund is open-ended and charges the high expense ratio of 2.19% and an exit load of 1% if the redemption request is made within 365 days of investment. SIP as well as the lumpsum investment is supported by the fund. The minimum initial amount of Rs 500 is required to initiate the investment. The minimum allowed SIP amount is Rs 1000. The NAV of Aditya Birla Sun Life Frontline Equity Fund is Rs 219.88 as of 25th June 2018.
The fund is suitable for the long-term investment to attain a financial goal with high returns. It has a slightly high-risk portfolio due to which the high returns can be expected. The new investors are advised to take the assistance of the financial experts before investing in this fund.
The article describes why an investor should choose Aditya Birla Sun Life Frontline Equity Fund for long-term capital gain.