- Editor Rating
- Rated 5 stars
- Birla Sun Life Equity Fund
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Birla Sun Life Equity Fund is a fund which aims for capital growth in the long term with regular income via investments of 90 percent in equities and the rest 10 percent in money market and debt instruments.
The scheme adopts a bottom up and top down method of investments along with a part that involves investments in emerging sectors, IPOs, and other offerings of the primary market.
Presented below is a detailed review of this fund which will provide you with all the necessary information that you require so as to make an informed choice about whether to sell, buy, or hold this fund.
Basic costs and other information
Birla SL Equity Fund was launched on August 27, 1998. It has thus been in the market for quite a long time. As of 30th April 2017, this equity-focused fund has assets of INR 5,287 crores. The minimum required investment for both lump sum and systematic investment planning (SIP) routes is INR 1000.
The expense ratio as of 30th April 2017 is 2.17 percent. If investors redeem the fund investment within a period of one year or 365 days of holding it, then the exit load is 1%.
Anil Shah has been the fund manager since October 2012. He is a cost accountant and a CA who worked for 15 years with RBS Equities (India) Ltd before moving to BSL AMC. Some of the other funds that he has successfully managed, or is currently managing, include Birla Sun Life India GenNext Fund; Birla Sun Life Manufacturing Equity Fund; Birla Sun Life Focused Equity Fund – Series 3, Series 4, and Series 5; and Birla Sun Life Emerging Leaders Fund – Series 3 and Series 4.
Allocation of the fund
As of 28 April 2017, the fund’s allocation stands as 89.20 percent in equities, 9.43% in Cash/Call, and 1.40% in others. The portfolio is focused on investments in large-cap stocks; it has 65 percent asset investment in large caps, 25 percent in mid-caps, and the rest in small caps.
As of 28 April 2017, the top 6 sectors that the fund’s portfolio focuses on include Banking/Finance (24.92%), Metals & Mining (7.78%), Chemicals (6.69%), Automotive (6.61%), Pharmaceuticals (6.58%), and Technology (4.99%).
As of 28 April 2017, the top 6 stocks that make up the fund portfolio include HDFC Bank (5.27%), Vedanta (4.59%), ICICI Bank (3.43%), Tata Chemicals (3.36%), Maruti Suzuki (3.02%), and Yes Bank (2.85%).
As of 28 April 2017, Birla SL Equity Fund has produced a 12.31 percent return per annum on investment in the last 10-year period. It indicates that the fund beat its ‘S&P BSE 200’ benchmark of 8.97 percent for this period as well as outpaced the category average of 11.79 percent. From the time of launch the fund has delivered 24.92 percent per annum returns.
In the past 1, 3, and 5 years, the fund has shown 31.71, 18.86, and 24.59 percent returns. Thus the 3-year returns of the fund are over 6% points as compared to category returns and over 11% points over the benchmark returns. On a 5-year period, the outperformance margins of the fund vis-à-vis category and benchmark are 5 and 8 percent respectively.
If the topmost holdings are taken into consideration, then it can be said that the Birla SL Equity Fund heavily leans towards the banking and finance sector. As per data of the past 3 years, the fund’s standard deviation, i.e., the volatility of the returns of the fund vis-à-vis its average, is 14.74% as of 31st May 2017. This is slightly higher than the category average which is 14.37% for the same period.
When the returns of Birla SL Equity Fund are compared against its peers during the past 5 year period, then at 24.59 percent returns it comfortably beats similar funds like DSP BlackRock Opportunities Fund (22.96%), Franklin India Prima Plus Fund (21.50%), and Reliance ETF Junior BeES (23.13%). However, when looking at the fund’s returns from a 3-year perspective, then other funds in the category have slightly better returns than Birla SL Equity Fund returns of 18.86%.
The fund’s portfolio has stocks of companies that offer consistent and noticeable earnings appreciation at decent valuations. It consists of a combination of value as well as growth picks. The fund is also keen about investing in businesses that are well-run, have no current triggers, and are offered at deep value. In 2016, the fund outpaced its peers and the benchmark by a big margin. This meant that it turned a full cycle from its 2011 performance setback marked by excess loss as compared to the category and benchmark. This positive long-term track record and consistent earnings growth is the main advantage of the Birla SL Equity Fund. Investors should invest in this fund for its inherent potential of wealth generation with equity.
Should I sell, buy, or hold?
The consistent and solid performance of Birla SL Equity Fund over a period of many years along with a superior performance achievement means that it gains our approval. Our suggestion to all investors is – “Buy.”
Excellent Fund Manager
Excellent Fund Size
Excellent Fund House
High Expense Ratio