Birla Sun Life's standout performers tend to be its debt funds. The fund house is very strong on the debt side with the bulk of its debt assets in cash funds. Some of its gilt and short-term funds stand out. What's interesting about this fund house is that the fixed income team always takes a call and does not necessarily follow the consensus. That makes it understandable that the Birla Sun Life roster includes some of the best as well as some of the worst debt funds.
Of its 14 funds which boast of a 5-star and 4-star rating, just one is an equity offering. Not surprising since equity assets stand at just around 17 per cent. None of the equity funds, barring Birla Sun Life Equity, are star performers.
Birla Sun Life AMC is a joint venture between the Aditya Vikram Birla Group and Sun Life of Canada, with an equal stake. Besides the mutual fund business, Sun Life has equal partnership with the AVB group in financial distribution and stock-broking businesses and is also a partner in the life insurance business.
In 2004, the AMC bought Alliance Capital AMC. Birla Sun Life's AUM was Rs 9,098 crore when it took over Alliance Mutual Fund (Rs 1,951 crore). This increased its AUM to Rs 11,049 crore (September 2004) and made it the fifth largest fund house in India.
Post acquisition, the number of funds run by Birla Sun Life swelled. Alliance Mutual Fund had 14 schemes which got added to Birla Sun Life's 38. The fund house also benefited from some equity funds like Alliance Basic Industries and Alliance Equity, which had been excellent performers.
