Earn Consistently with Aditya Birla Sun Life Regular Savings Fund
Formerly known as Aditya Birla Sun Life MIP II Wealth 25, Aditya Birla Sun Life Regular Savings Fund by Aditya Birla Sun Life Mutual Fund is one of the conservative hybrid mutual fund schemes. This open-ended scheme invests mainly in debt instruments to help investors earn regular income over medium to long term. This scheme was launched on May 22nd, 2004 and is currently managed by Mr. Pranay Sinha, Mr. Satyabrata Mohanty, and Mr. Vineet Maloo.
Portfolio Analysis of ABSL Regular Savings Fund
This fund among the mutual fund schemes has invested 23.95% assets in equity and equity related instruments, 60.21% in debt, and 15.84% in cash and cash equivalents. This scheme has invested across 52 stocks and has invested majorly in financial sector followed by construction, technology, automobile, and cons durable sectors.
The top ten companies in whose equity it has invested the most are Tata Consultancy Services, Bajaj Finance, Natco Pharma, Bajaj Finserv, IRB InvIT Fund, HDFC Bank, Reliance Industries, Maruti Suzuki India, Voltas, and Dalmia Bharat with investment percentage being 1.61%, 1.35%, 1.18%, 1.16%, 1.08%, 1.06%, 0.98%, 0.86%, 0.85%, and 0.84% as on September 30th, 2018.
The top ten companies in whose debt instruments it has invested majorly are Reliance Jio Infocomm 2023, 7.99% Kotak Mahindra Investments 2019, 9.75% Uttar Pradesh Power Corporation 2026, TMF Holdings 2019, Shriram Transport Finance 2019, 7.95% PNB Housing Finance 2019, 4% Indiabulls Housing Finance 2019, 1.5% HDFC 2020, 7.04% National Bank Agr. Rur. Devp 2020, and 8.8% Shriram Transport Finance 2019 with the percentage investment being 4.80, 3.87, 3.85, 3.62, 3.17, 2.88, 2.46, 2.01, 1.94, and 1.93, respectively.
ABSL Regular Savings Fund G : Performance Analysis
The trailing returns generated by this scheme in three-year time period is 7.02% which is better than both the category (6.26%) as well as the return rate generated by benchmark VR MIP TRI (6.71%). The five year returns generated by this scheme is 11.23% which is again better than both the category and benchmark’s returns which are 9.22% and 8.65%, respectively as on October 26th, 2018. This states that the scheme is good for investing if the investment is made for the period of three and five years.
ABSL Regular Savings Fund - Growth Plan : Risk Analysis
Risk management plays an important role in how the scheme will perform as efficient risk management can lead to better returns. The standard deviation of this scheme 7.14 and Beta of the scheme is 1.32. The Sharpe ratio of the scheme is 0.20 which is better than the ratio of its category which is 0.06, this states that the scheme is likely to yield better returns with the risk taken. It should be noted that all these measures are as on September 30th, 2018 and have been calculated using last three years’ calendar month returns.
Investment Details for Investors
It should be noted that Aditya Birla Sun Life Regular Savings Fund is for aggressive investors as the risk involved is moderately high on the principal amount invested. You may start investing in this scheme with the minimum investment amount of Rs. 1000. Although there is no entry load, if an investor redeems the units within one year of investment, then if will become liable to pay 1% as exit load. As on October 26th, 2018, the net asset value of this scheme was Rs. 36.8101. You may invest in this scheme through lump sum as well as SIP investment. To calculate the right SIP amount to invest in this scheme, you may use the SIP calculator at MySIPonline. You may even invest online through the same platform. Happy Investing!