Mar 29, 2017 3 min read

Birla Sun Life Frontline Equity Fund- A Consistent Performer

Know how Birla Sun Life Frontline Equity Fund is a start-performer in the mutual fund industry.

A portfolio leant towards large-cap stocks, returns which beat the benchmark and the peers across all the market cycles, and the focus towards maintaining quality and valuations has made Birla Sun Life Frontline Equity Fund a good plan for the investors who don’t want to take too much risk exposure. So if you are looking to grow wealth over a longer tenure with a star-performer, then BSL Frontline must be added to your portfolio. Here we provide you with the analysis of the scheme to make you get well aware of its efficiency.

Birla Sun Life Frontline Equity Fund:

Launch Date: Aug 30, 2002
Category: Large Cap Equity Fund
Benchmark: S&P BSE 200
Fund Manager: Mahesh Patil since November 2005

Let’s take a review of the fund’s overall investing style, performance and suitability factors to gain knowledge about why investing in this plan is worthwhile for every investor.

Investment Strategy:

The fund is a growth-oriented and large-cap equity mutual fund which aims to provide capital appreciation in the long-term period through a portfolio that targets allocation of 100% assets in equities. It aims to become as diversified across various industries and or sectors as its benchmark index, i.e., BSE 200.

  • The majority of the asset allocation, i.e., up to 85% of the total AUM of the scheme is made in the giant and large-cap companies, while a small proportion of 10-15% of the total AUM is invested in the mid-cap corporates.
  • It maintains a sectoral weight within the tight range as it is constructive for better investments in the stocks.
  • The stock selection by the fund manager of the scheme is highly commendable as he considers the valuations very closely keeping the flexibility requirement in consideration. And thus, it offers growth opportunities to the investors.
  • The turnover of the holdings of the scheme is higher which leads to meeting the investment objectives in a strategic way on the basis of valuation and growth factors.
  • The fund manager keeps analysing the market trends and changes the asset allocation of the fund on the basis of price momentum and valuation as and when required.

Performance Evaluation:

The overall track record of the scheme is appreciable when compared with its benchmark and peers.

  • It has beaten the benchmarks every time and has outperformed its peers many a time by generating higher profits.
  • The performance of the scheme in the bull market is substantial as it has outperformed the benchmark with a higher margin that makes it a star-performer.
  • During the market downturn, the scheme has showcased its efficiency by yielding considerably lower negative returns as compared to its benchmark and category.

The following table depicts the overall performance of the scheme for the mentioned years as against its benchmark:

  •  The annualised returns of the scheme as on 24 March 2017, for the one- three- and five-years investments have been appreciable, and it has outperformed the benchmark every time; which can be evaluated from the following table.

*Note: SIP due date, in this case, is 1st of every month, and the returns calculated on growth value as on 31-12-2016.

Accordingly, we can conclude here that the fund is a star-performer in the mutual fund industry and holds a remarkable position in the market. One must consider this plan for their portfolio if they have the following investment requirements.

Suitability:

This fund is best suited to the investors who have moderate- to low-risk profile and want to invest for long- to mid-term investment tenure, i.e., for five and more years without compromising on their invested capital.

So if you wish to make a SIP or lump sum purchase in Birla Sun Life Frontline Equity Fund for your investment portfolio, then MySIPonline and its team are always ready to help you. You must get associated with us to experience the different style of investing.

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