Skip to main content

Mutual Fund Review: Birla Sunlife Frontline Equity Fund

Name: Birla Sunlife Frontline Equity Fund-Growth
Type: Open-Ended Equity Diversified
Fund Manager: Mr. Mahesh Patil & Mr. Nimesh Chandan
Inception Date: August 30, 2002


Birla Sunlife Frontline Equity Fund is an open-end growth scheme from Birla Mutual Fund and seeks to achieve long-term growth of capital, through a portfolio with a target allocation of 100% equity by aiming at being as diversified across various industries and or sectors as its chosen benchmark index, BSE 200. The secondary objective is income generation and distribution of dividend.

It invests in handpicked frontline stocks i.e. stocks which have the potential of providing superior growth opportunities ensuring all leading sectors of its chosen benchmark, thus resulting in a highly diversified portfolio. The scheme targets the same sectoral eights within its portfolio as the benchmark, the BSE 200. However, the fund actively manages the portfolio and has not always limited its choice of stocks to the benchmark providing a wider universe of investible stocks.
 

Though the scheme primarily focuses on top 200 corporates that comprise the benchmark the scheme has managed to deliver the superior performance over its benchmark. Its stock selection along with the momentum picks and rally in largecap stocks has aided the returns. The scheme has posted one year return of 37.5% and has consistently outperformed its benchmark. Its performance has been equally good in last six months and has returned 7.57% while peers lost 1.05%.

 

The scheme has witnessed tremendous growth in its assets under management from Rs 7.8 cr in July 2005 to Rs 81.95 crore as of now. However it has gone down by 50% in last six months. As per stated guidelines it could invest upto100% of its net assets in equity and equity related instruments and as on July 2006, the scheme has allocated 88.63% of its assets in equities and rest in cash and equivalent. Average equity allocation in last one year has been at 91.11% of assets under management of the scheme. However cash exposure of the scheme has gone up in last few months seeing the volatility in the equity markets. It went as high as 22.68% in the month of May when equity markets witnessed sharp correction of 13.6% and again went down to 9.81% when markets showed some signs of recovery in June.
 
 
 
As on July 2006 the scheme has a well diversified spread across 36 stocks and exposure to any single stock is restricted to less than 7%. Top 10 holdings constitute 40.41% of the equity portfolio with Infosys in top place. Other than Infosys top holdings are SBI, Crompton Greaves, Mc Dowell & Company and Syndicate Bank. This month it made fresh exposure to McDowell& Company and Taj GVK Hotels while exited from the stocks of Reliance Energy, IDBI and M&M. Top 5 sectors account for less than half of the equity portfolio and over a period of one year it has further hiked exposure in Diversified, Electrical and Auto sector while trimmed in IT and Banking sector. BHEL, Reliance, Bharti and Infosys has been the fund's top choice in last one year and exposure to Infosys went upto 9% of net assets in equity.
 
Minimum investment required to enter the scheme is Rs 5000 and offers both dividend and growth options. The fund charges an entry load of 2.25% for investment amount less than Rs.5 crore, while no entry load is charged for investment amount equal to or greater Rs.5 crore. The scheme charges an exit load of 1% if redeemed within 6 months from the date of allotment. Expense ratio of the scheme is 2.5% as on June 2006 and is higher than the category average of 2.22%.

The scheme has primarily seen Bull Run but its performance in these three years has been impressive enough. Focussed investment strategy of investing in quality stocks across the leading sectors of the economy makes it a suitable choice for the conservative investors.
 

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

NPS Investment Choice for Safe Investors

Invest NPS Online       Whether they invested through SIPs or put in a lump sum amount, risk-averse individ uals have earned the highest returns. These are investors who stayed away from stocks and divided their NPS corpus between G class gilt funds and C class corporate debt funds. On average, gilt funds have given 9.75% annualised returns while corporate debt funds have churned out more than 11% in the past five years. As a result, the average return for ultra-safe investors in the past five years is in double digits. Even in the short term, ultrasafe investors have been the biggest gainers among NPS investors. Will the good times continue? The gilt funds of NPS are holding long-term bonds with an average maturity of over 19 years and a modified duration of about 9 years.These funds have done well because interest rate cuts have pushed down bond yields. But experts say this trend will not stay forever. NPS is a long-term investment and the bonds are predominantly held to matu...
Read more

Buy Health Insurance Plan even if you are covered with my Employer

Buy Health Insurance Plan Online Yes, getting a private insurance cover now, which extends beyond your retirement age, is recommended There are a few reasons why buying a health insurance plan may make sense even though you get medical insurance from your employer. Here are the points you need to think about. Firstly, your employer's insurance coverage will only protect you as long as you are employed with the company. The policy will terminate when you quit the job or when you retire. Post retirement is perhaps the phase when one needs it the most but you won't have it then. Moreover, buying a new insurance policy after the age of 50 means that there will be no coverage for pre-existing diseases.   Lastly, health insurance policy you get from your employer may or may not cover your dependants. ------------------------------ ----------------- 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 M...
Read more

SBI MAGNUM MIDCAP ONLINE

Invest SBI MAGNUM MIDCAP ONLINE   SBI MAGNUM MIDCAP fund didn't fare well in its initial years but, in recent years, has steadily improved its performance under the capable hands of its current fund manager. Although investing predominantly in mid-cap stocks, the average market capitalisation of its portfolio is lower than other category peers.   Although the stock selection approach is mostly bottom-up , the fund manager doesn't shy away from taking bold sector bets , as is reflected in its large exposure to the healthcare sector. She is equally adept at handling performance across market cycles--the fund has captured more of the upside during market upticks and contained the downside during downturns in a better manner than its peers.   Given its superior risk-reward equation, the fund is a worthy pick in its category.     ----------------------------------------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing EL...
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