Aditya Birla Sun Life Advantage Fund

The Aditya Birla Sun Life Advantage Fund is a mutual fund investment scheme which adopts a diversified investment approach and looks to generate long-term capital appreciation for its investors. This mutual fund investment is apt for moderately aggressive investors and seeks to invest predominantly in a diversified portfolio of equity and equity related securities. The management team emphasizes on investing in organizations who showcase sound corporate management that display good future growth prospects.

 

This mutual fund investment is an open ended scheme and holds the distinction of being ranked third in Diversified Equity category by CRISIL for the quarter ended June 2017. However, it must be pointed out that the fund is down a rank as it was ranked number two in the same category in the previous quarter. Launched in February 1995, this fund looks to invest your money in growth and value stocks of mid cap and large cap companies. Although it lagged behind the BSE 200 Index benchmark between 2006 to 2011, since 2012, it has managed to steadily pick things up and is currently outperforming the benchmark index.

 

This fund has been under the management of experienced stalwart, Satyabrata Mohanty who took over the fund management role in October 2011. The fund has profited from the management team’s bottom-up approach towards stock picking while also managing to deftly navigate it through the market’s ups and downs. Moreover, the fund’s dividend option also has displayed a strong dividend payout track record and has managed to announce dividends every single year in the last decade, except in 2006 and 2007.

 

Essentially multi-cap fund, the fund portfolio is evenly balanced between large cap stocks and small/mid cap stocks. The fund exhibits a strong bias towards investment in cyclical sectors. Therefore, sectors such as Banking and Financial Services, Automobiles and automobile ancillaries, Engineering, Cement, and Construction etc. predominantly comprise the sector allocations of the fund’s portfolio. Further, the top five companies in the company’s portfolio are made up of banks. After a below-par performance in 2013, thanks to the fund’s fund’s large-cap stock selection, the fund managed to outperform the benchmark considerably in 2014. This mutual fund investment prefers to remain fully invested in the market, so major cash calls are generally avoided. The expense ratio of this mutual fund is also slightly on the higher side at 2.85 per cent.

 

This fund is Ideal for investors looking to fulfil long term financial objectives such as retirement, child’s education, or as a seed fund for launching a startup. Over time, it has managed to successfully create wealth for its long term investors.Investors looking to invest in this fund should take into a consideration a minimum investment horizon of at least five years and shouldn’t consider this fund if looking for immediate results. Additionally, this can double up as a tax saving fund as there is zero capital gains tax on holding this fund for more than one year.

 

You can look towards investing in Aditya Birla Sun Life Advantage Fund either through the systematic investment plan (SIP) or lump sum mode with a long time horizon. Please do consult with our financial advisors to enquire if Birla Sun Life Advantage Fund is suitable for your investment portfolio. Our financial advisors can also be approached if you’re looking for customised investment plans.