Birla Sun Life Mutual Fund is a multi-cap fund launched in 1998. Birla Sun Life Mutual Fund predominantly invests in equity stocks and therefore it is also called as the Birla Sun Life Equity Mutual Fund. This mutual fund is ideal for long term capital appreciation. It can diversify across industries and economic sectors.
This mutual fund belongs to Birla Sun Life Mutual Fund family which is currently India’s 4th biggest fund house in terms of asset under management out of over 40 fund houses. Birla Sun Life Mutual Fund house was established in 1994. However, Birla Sun Life Equity Mutual Fund was launched in August of 1998. This mutual fund has been active for more than 19 years now and has seen all major market ups and downs. The is perhaps a very experienced fund and is categorized under the multi-cap category. The main benefit of being a multi-cap fund is that it can increase or decrease share in any company irrespective of its size. The asset under management (AUM) of this mutual fund is slightly below Rs.5,300 crores and is the 9th biggest multi-cap fund among a population of around 60 funds in this category.
In trailing returns, Birla Sun Life Equity Mutual Fund has consistently beaten its benchmark index i.e. BSE 200 as well as multi-cap category average across 1, 3, 5, and 10 years. The fund has shown very good performance in the trailing returns. But if you go by the calendar returns for the last 10 years, Birla Sun Life Mutual Fund has not performed well. This mutual fund was beaten by both benchmark and category average 3 times before 2012. After 2012, this mutual fund has beaten both category average and benchmark in 4 years. This transformation in performance has only one reason behind it; change of the fund manager. The performance of Birla Sun Life Mutual Fund in the bear market of 2008 is below average.
Birla Sun Life Equity Mutual Fund is managed by Anil Shah since October 2012. Birla Sun Life GenNext fund also falls under the purview of Anil Shah. Birla Sun Life GenNext fund under the leadership of Anil Shah has given a very good performance.
Birla Sun Life Equity Mutual Fund has 74 stocks in the portfolio with top 5 stocks contributing only 19% of the total asset under management. The top 5 stocks of this mutual fund are; HDFC Bank, Vedanta, ICICI Bank, Tata Chemicals, and Maruti Suzuki. It is evident that the mutual fund has a pretty diversified portfolio. Birla Sun Life Equity Mutual Fund predominantly invests in the banking and financial sector (25%). The energy sector receives 7% of the allocation and the metal sector receives 8% allocation.
The expense ratio is an important consideration while selecting a mutual fund has it has a direct impact on the net gains. In a nutshell, the expense ratio is the cost of running a mutual fund. In the case of Birla Sun Life Equity Mutual Fund, the expense ratio stands at 2.17%. This is lower than the average expense ratio of the multi-cap category which is around 2.3%.
To summarize, Birla Sun Life Equity Mutual Fund is an experienced mutual fund in the multi-cap category. This is a large-cap oriented fund which mostly keeps large cap allocations more than 60%. The performance of the fund has improved manifolds since 2012. The credit for this transformation completely goes to the new fund manager, Anil Shah. Now, Birla Sun Life Equity Mutual Fund has become an attractive choice for mutual fund investors.
You can invest in this fund online through a 100% secure online process here.