Aditya Birla Sun Life Frontline Equity Fund is the popular large-cap fund which has been trusted by thousands of investors. It has enormous assets under management of Rs 20,203 crore as on 30 June 2018. It has been able to bag the trust of thousands of investors because of the consistent performance it has shown since its inception and the robust support of Aditya Birla Sun Life Mutual Fund. The AMC is a joint venture of Aditya Birla Group and Sun Life Insurance. Both of the owners are prominent and trustworthy financial giants with a bulk of national and international experience respectively.
Aditya Birla Sun Life Frontline Equity Fund (G)
This large-cap fund has rewarded the investors with stable and consistent returns over the long term. The large-cap funds invest the corpus in the large-sized companies which have a market capitalisation among the top 100 in India. Such companies are financially stable and have experienced the market volatility for a long time. As a result, they can weather the small bumps and barriers in the equity market and can provide stable returns. These jumbo sized companies are least prone to risks but can only offer a limited return.
Performance of the Fund
The fund has performed better than its benchmark and peers in the long term. In last five years, it has generated an annualised return of 16.66% while the benchmark NIFTY 50 has shown 14.31% annualised return. The recent performance of the fund has shown below satisfactory return due to the volatile equity market in recent months. Since its inception in August 2002, it has generated an annualised return of 21.26%. (Data as of 17th July 2018)
The Fund Manager
The fund is managed by Mr Mahesh Patil who is the senior fund manager at Aditya Birla Sun Life Mutual Fund. He was appointed as the fund manager of Aditya Birla Sun Life Frontline Equity Fund in November 2005. He is a B.E. in electrical, MMS in finance, and Chartered Financial Accountant from ICFAI Hyderabad. Before joining ABSL Mutual Fund, he worked with Reliance Infocom Ltd, Motilal Oswal Securities, and Parag Parikh Financial Advisory Services Ltd.
Portfolio of the Fund
The fund manager invests more than 80% of the corpus in the equity instruments of large-cap companies as per the guidelines of SEBI the minimum amount which needs to be invested in large-cap companies by a large-cap fund is 65% of the total corpus of the fund. Aditya Birla Sun Life Frontline Equity Fund also allocates 10-20% of the corpus in mid-cap companies. Banking and finance sector companies are the primary targets of the fund manager which possess more than 32% of the corpus. The fund manager also influences other sectors like technology, automotive, oil & gas, engineering. Top holdings are HDFC Bank, ICICI Bank, Infosys, ITC, Larsen, etc.
The fund allows investment through SIP as well as lumpsum which starts from a minimum amount of Rs 1,000. The expense ratio is 2.19% as of 30th June 2018, and the exit load is 1% for redemption before 365 days of investment.
It is suitable for the investors who seek for steady and consistent long-term capital appreciation. The risk factor is moderate, and returns for long-term are above average, due to which the fund is suitable to fulfil the financial goals of the majority of investors. The fund has a superb track record with reliable and experienced roots which has made this fund a top priority for numerous large-cap investors.
Read the article for the details of Aditya Birla Sun Life Frontline Equity Fund and its various attributes regarding mutual fund investments.