Amongst the volatility of the equity market, there are very few funds who are performing and providing their best from over a decade. Aditya Birla Sun Life Frontline Equity Fund is one of the schemes, which has been utilising the capital of investors in the right direction. With its record performance, the financial analysts of MySIPonline have researched on its strategies, which have been briefed below:
Aditya Birla Sun Life Frontline Equity Fund: An Overview
Launched in the year 2002, the fund has an AUM of Rs 20,203 Cr as on Jun 30, 2018, with an expense ratio of 2.19%. It is an open-ended large-cap category scheme which predominantly invests in equity and equity-related securities. To keep the required liquidity in its portfolio, the fund secondarily invests in debt instruments and money market securities.
The average market capitalisation of the fund is Rs 103,466.62 Cr as on Aug 1, 2018. This capital is invested 60.17% in giant companies, 23.45% in large-cap companies, 15.89% in mid-cap companies, and 0.49% in small-cap companies.
Currently, the fund is investing in 72 companies from different sectors. The major sectors it holds are finance and banking, technology, FMCG, energy, automobile industry, etc. The top five companies which own the 26.26% of total assets are HDFC Bank, Infosys, ICICI Bank, ITC and Larsen and Toubro.
Past Performance Analysis:
Aditya Birla Sun Life Frontline Equity has provided the returns of 21.59% since its launch. The large-cap category fund has generated the negative alpha in the past three years but has beaten its category average, which is -0.31%, as provided on June 30, 2018, as supplied by the financial analysts of MySIPonline.
The compounded returns of the fund for the past three, five and seven years were 10.08%, 18.82%, and 14.59%, respectively. The returns of five and seven years have outperformed its benchmark, S&P BSE 200 as well as category average. The three-year returns were lower than its benchmark.
The highest annualised returns of the fund were in the year 2009 with 90.45%. The returns of the fund for the year 2014 was 44.72%, 1.1% in 2015 when the benchmark and category average has given negative returns, 7.43% in 2016 and 30.58% in 2017, where it underperformed category average.
Aditya Birla Sun Life Frontline Equity Fund Growth has been managed by Mr. Mahesh Patil since 2005. He has been working in the financial space since long ago and has 20 years of experience in fund management, equity research and corporate finance.
He is among the handful of fund managers who have executed the strategies of the fund excellently to provide better returns in the long run. Mr. Patil believes in long-term holdings of any stock, by focusing on returns on capital employed, growth earning potential and return on equity provided by the company. He follows the growth investment philosophy, to invest in any stock. The prudent stock selection and timely shift from sector to sector, picking up shares on a bottom-up approach, helped the fund to grow at a fast pace.
The NAV of Aditya Birla Sun Life Frontline Equity Fund G is Rs 225.04. It is most suitable for the investors who have an appetite for tolerating a moderately high-risk, as the fund mainly invests in equity, which is of a volatile nature. Investors should have an investment horizon of five years or more to reach the decided financial goal. For more information regarding investment, connect with our experts at MySIPonline.