Skip to main content

Mutual Fund Review: Birla Sunlife Income Fund


Type: Debt Income
Fund Manger: Navneet Munot
Launch Date: 3rd March, 1997

The current inflation rate in the Indian economy clearly signals to the over heated conditions of the markets, with the inflation touching a two year high of 6.12% in the last month, dropping back and again rising to a high of 6.11%, the market is jittery about the next policy of the Central Bank. The Reserve Bank of India also looks worried about the inflation and in a move to curb the excess liquidity in the markets; it raised the repo rate by 25 bps in its last third quarter Monetary Policy review last month, along with other measures and by this move the central bank has tried to make the money costlier in order to cut down of the excess money supply in the market.

In these times when the inflation is on a high, and there is increased interest arte volatility, investors are parking their money in the shorter –term debt schemes to earn a return over a short period of time. However certain debt products in other categories have put up some impressive performance. In the debt income category Birla Sunlife Income Fund has performed well and has given an absolute return of 2.23% over the last 3 months and 4.91% over the last 6 months. The scheme has been a consistent performer over the last one year and according to the returns over the last year it stands second in its category. The absolute return over the year was 7.75% whereas the peer group average was 5.12%. Its benchmark index, Crisil Short-Term Bond Fund Index managed to give an absolute return of 5.95% during the same period.

Birla Sunlife Income fund has been in existence since March, 1997 and since it's inception has grown at a CAGR of almost 10 %. Over a period of 5 years, the fund holds a rank of 5 in its peer group returning a CAGR of 6.83%. It manages a corpus of Rs.33.66 crore which has not seen much movement in the last one year.

A major portion of the portfolio is invested in Treasury Bills and Corporate Bonds. Treasury Bills make almost 45.79% of the portfolio whereas Corporate Bonds have a smaller portion of 22.94% in the total portfolio. 20.77% of the portfolio is in cash holdings and the rest 10.5% is invested in Securitized instruments. The scheme has invested around 28.23% of its portfolio in finance sector followed by current assets and power generation sector. The fund manager has invested the portfolio heavily into sovereign instruments and bonds with AAA ratings. Around 45.79% of the portfolio is invested in sovereign instruments whereas around 43.74% is placed in bonds with AAA bonds. The fund manager has done a major shift to the portfolio as the holding of sovereign instruments has gone up by 17.24% which were 28.55% a month ago.

Birla Mutual Fund has seen an increase in its assets under management by Rs 4135.48 crore over the month of January, 2007, and majority of this increase has come from the debt and the liquid schemes. With the kind of increase mentioned above the schemes offered by the fund house looks good for future investments. Though the corpus size Birla Sunlife Income Fund may not seem as a very lucrative fund but looking at the kind of performance of the scheme over the last few months and also a decent track record since inception the scheme looks good for future investments.

 

 

Scheme Name

1 Year

Rank as per 1 Year

DBS Chola Income Plus - Growth

24.7164

1

ABN AMRO Flexi Debt Fund - Growth

8.7544

2

Birla SunLife Income Fund - Growth

7.7483

3

Birla SunLife Income Fund - 54EB - Growth

7.7480

4

Birla SunLife Income Fund - 54EA - Growth

7.7478

5

 

-----------------------------------------------------------------

 

Also, know how to buy mutual funds online:

 

1) DSP BlackRock Mutual Funds:

http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html

 

2) Reliance Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html

 

3) Reliance Mutual Funds:

http://prajnacapital.blogspot.com/2011/07/buying-hdfc-mutual-funds-online.html

 

4) Sundaram Mutual Funds:

http://prajnacapital.blogspot.com/2011/07/buying-sundaram-mutual-funds-online.html

 

5) Birla Sunlife Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-birla-sunlife-mutual-funds.html

 

6) UTI Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-uti-mutual-funds-online.html

  

7) SBI Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-sbi-mutual-funds-online.html

 

8) Edelweiss Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-edelweiss-mutual-funds-online.html

 

9) IDFC Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-idfc-mutual-funds-online.html

 

Popular posts from this blog

Surrender ULPPs

  ICICI Pru LifeTime and ICICI Pru Lifestage are Unit Linked Pension Plans. Such insurance linked retirement plans are neither good investments nor do they offer sufficient insurance cover. As you can see, these have turned out to be bad deals. In the Lifetime plan, the fund value is not even equal to the total premiums that you have paid and in the Lifestage plan your return is just about 6% which is quite low. The mortality charges are as per your age which is why they have increased. Moreover, once these plans matures, you will have to compulsorily opt for annuity (regular income) and the annuity rates are generally modest. Assuming these plans mature in the next one year, it will be wise to surrender the plan now and curb your future commitments.   Before you choose to buy a term plan, you have to consider a few points. You need to insure yourself, only during the time you are working and your family is financially dependent on you. At the age of 59, not all insurance companies w...
Read more

ICICI Pru Constant Maturity Gilt dividend

Invest ICICI Prudential Constant Maturity Gilt Fund Online ICICI Prudential Mutual Fund   has announced dividend under the following schemes: Scheme Dividend ( R /unit) ICICI Pru Constant Maturity Gilt-DQ 0.26543239 ICICI Pru Constant Maturity Gilt Direct-DQ 0.27171609 ICICI Pru Q Interval Plan I-D 0.10617296 ICICI Pru Q Interval Plan I Direct-D 0.10703967 ICICI Pru Q Interval Plan I Ret-D 0.10617296             The record date has been fixed as June 13, 2016.   ----------------------------------------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in india for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Franklin India TaxShield 4. ICICI Prudential Long Term Equity Fund 5. IDFC Tax Advantage (ELSS) Fund 6. Birla Sun Life Tax Relief 96 7. DSP BlackRock Tax Saver Fund 8. Reliance Tax Saver (ELSS) ...
Read more

Sundaram Mutual Fund new plan Sundaram Fixed Term Plan CJ

Sundaram Mutual Fund has announced the launch of a new fund named as Sundaram Fixed Term Plan CJ. The new issue will be closed for subscription on January 30. --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.   Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications   These Application Forms can be used for buying regular mutual funds also   Some of the best Tax Saving Mutual Funds available are: 1. HDFC TaxSaver 2. ICICI Prudential Tax Plan 3. DSP BlackRock Tax Saver Fund 4. Birla Sun Life Tax Relief '96 5. Reliance Tax Saver (ELSS) Fund 6. IDFC Tax Advantage (ELSS) Fund 7. SBI Magnum Tax Gain Scheme 1993 8. Sundaram Tax Saver   -...
Read more

Group Health Insurance

Buy Group Health Insurance Online   For Human Resources, the biggest challenge today is to decide whether medical benefits should be offered to employees or not, what type of plans should be offered, what will be the cost and how will the cost be split between employees and employer. Well, most of these are subjective and would depend on a lot of factors including company size, average employee salary, etc. However, this article will give you a fair idea on how you should go about deciding these factors: 1. Why offer group health insurance benefit to employees : Studies have proved that retention rates among employers offering GHI are much higher than the ones who are not offering. Moreover, the cost of providing this benefit as a percentage of salary is very low as compared to the perceived value. As an example, say if average salary of an employee in your organization is 4 LPA. If you decide to offer a health insurance benefit to him for a Sum insured of ...
Read more

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now