Fund Review: Aditya Birla Sun Life Top 100 Fund G
Aditya Birla Sun Life Top 100 Fund is an open-ended large-cap equity scheme that invests in equity and equity-related securities of top 100 companies in India on the basis of their market capitalisation. It aims to provide medium to long-term capital appreciation to the investors by investing predominantly in a diversified portfolio of the stocks of top 100 companies in India belonging to various sectors.
The idea behind chasing the top 100 companies is that mostly they have solid infrastructure and R&D facilities, and are run by experienced management teams. This ensures the profitability and stability of the stock value over the long-term period. However, excessive growth becomes a secondary thing in this case. One more logic behind chasing the big companies is that they weather the storm better than the smaller companies and also bounce back faster. Aditya Birla Sun Life Top 100 Fund was launched in the year 2005, and has managed to endure several downturns in the market. The scheme has also proved its mettle during the notable market corrections by limiting the downsides. Let’s scan the details of the scheme to understand its complete profile.
Who Should Invest?
Investors having an investment objective of attaining healthy & stabilised growth in the capital over a long period of time can invest in this scheme. It holds a moderately high level of risk, so investors should be aware of the volatility rate they are going to face. But still, the concentration of this fund in large-cap stocks helps it to maintain the stability in performance.
About the Fund Manager
Mr. Mahesh Patil is an excellent market observer with a corporate experience of over 25 years. He has started the management of this scheme in the year 2010, and since then the overall performance of the scheme is quite impressive. He joined ABSL AMC in the month of October 2005, and since then he has been pouring his expertise in the management of many schemes of which some of the scheme managed by him are:
- Aditya Birla Sun Life Frontline Equity Fund - since Nov 2005
- Aditya Birla Sun Life Infrastructure Fund - since Jan 2006
- Aditya Birla Sun Life Top 100 Fund - since Jul 2010
- Aditya Birla Sun Life Balanced '95 Fund - since Jan 2014
- Aditya Birla Sun Life Pure Value Fund - since Jan 2014
Prior to joining this fund house, he has worked with Reliance Infocom Ltd., Motilal Oswal Securities, and Parag Parikh Financial Advisory Services Limited.
Strategy of Investment
Basically, the fund manager of this scheme follows a buy-&-hold strategy of investment. It indicates that Mr. Patil chooses large-cap companies to invest with a specified theme in mind and waits for the theme to bring out the positive colors of benefits in time.
ABSL Top 100 Fund: Portfolio Allocation
In the chart shown above, the top 10 sectors that hold the highest capital value of the fund has been depicted. Among them, if you see the top five sectors, i.e., Financial, Energy, Automobile, Technology, & FMCG, it can easily be noticed that the fund is limiting the exposure as compared to the benchmark. It is because of the strategy of the fund manager. The investment technique of the scheme believes that limited exposure to a particular sector will help in gaining the opportunities from the other options available. Moreover, the core idea of the fund, i.e., investing only in the top selective stocks, makes it expose lesser to a particular sector. Here are the top 10 holdings of the scheme:
Aditya Birla Sun Life Top 100 G Fund: Performance
The performance chart of this scheme is worth seeing as it is good to know the strengths and weaknesses of the fund you are investing in. The scheme has showcased amazing moves since the day it was launched. Followed by stabilised growth, it has managed to fetch healthy benefits to the investors. In the image as given below, you can see the past five years’ performance of the fund and its benchmark. It can be clearly seen that how fantastically it has beaten up its benchmark with healthy margin constantly in all the five years.
If we talk about the greatest dip of this scheme, it was in the year 2008 when the entire economy faced a down-storm. Its NAV was tracked at Rs. 23.52 as on January 08, 2008, which dropped to Rs. 10.50 by March 06, 2009. However, it has managed to recover very soon and showcased healthy booms in the time ahead. The latest NAV of this scheme has been recorded at Rs. 55.47 as on 16 March, 2018. And, the all time high NAV for this scheme was captured at Rs. 60.64 as on January 23 this year.
Being an equity category, volatility is in-build nature of this scheme. But, the exposure to selected top 100 stocks helps the fund to maintain higher stability in the performance in comparison with the category & benchmark. Therefore, one must not forget to add this scheme to portfolio if one wants to attain long-term capital appreciation.
** The growth chart has been prepared on the basis of NAV and index price of ABSL Top 100 Fund G in the past five years (September 02, 2013 - March 16, 2018)
ABSL Top 100 Fund: Annual Returns Analysis
In the chart below, comparison of the annual returns provided by the scheme, Nifty 50, and the large-cap equity category has been done. It can be seen that the fund has again proved to be superior than both its benchmark and the category in terms of generating returns on investment. Besides providing healthy returns on investment, the scheme has also proved its excellence during the downfalls like in 2008, 2011, & 2015, by limiting the losses at the maximum possibilities in comparison with its benchmark and category.
** Source Value Research
ABSL Top 100 Fund: Risk Measures
Before investing in any mutual fund, the clever investor or the informed one will always check the risk measures of the scheme to know the profitability of the investment. The Alpha of 1.75% shows how superior the fund has performed against the benchmark in the last period. Beta less than 1 indicates that the fund is less risky, whereas the beta above 1 means investments are more volatile than the market. Similarly, all the risk measures of a scheme indicate the various aspects of its performance. You too must check them before selecting any scheme for investment. Moreover, they can also be checked periodically to accumulate the knowledge about the scheme.
Aditya Birla Sun Life Top 100 Fund - G: Final Showdown
ABSL Top 100 Fund is one of the best schemes of ABSL Asset Management Company. It has featured in top 30 percentile in the past 12 quarters ended June 2017, which means in CRISIL fund ranking of 1 or 2. In the very next quarter to it, the ranking slipped down by one star, however, the performance was still better than the benchmark. Presently, the fund is facing a correction but the experts believe it to showcase healthy jumps in the future.
If you have a financial objective of fetching capital appreciation from a less risky investment, then this fund can be one of the best options for you. For a more specified selection of fund for investment, you can take help from our experts by associating with us at MySIPonline. Stay tuned for reviews on more mutual fund schemes.
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