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When investors come to the financial experts of MySIPonline, with their risk appetite and return requirements, the first question they ask before investing in any scheme is whether it’s right for them or not. Then our experts ensure them that how the particular fund will help to create wealth in the long run and also make them financially independent. Thus, today, we have brought you one such fund, which is suitable for every investor who wants to create wealth by investing in the equity, and it is Aditya Birla Sun Life Frontline Equity Fund. So, before parking your capital in the fund, have a look at the details provided below:
1. About the Fund: Aditya Birla Sun Life Frontline Equity Fund has 100% asset allocation in the equity. The fund seeks long-term capital appreciation by investing in diversified industries and companies which fall in the index NIFTY 50. Being an open-ended scheme, it was launched in the year 2002 and comes under the large-cap category.
2. Portfolio Designing: The portfolio of ABSL Frontline Equity Fund comprises 74 companies. Its average market capitalization is Rs 103,162.85 Cr as on July 7, 2018, which is invested 61.01% in the giant companies, 22.56% in the large-cap companies, 15.94% in mid-cap, and 0.49% in small-cap companies.
Its assets are allocated in diversified sectors including financial and banking sector, FMCG, technology, energy, automobile, healthcare sector, etc. The top five companies where the fund is investing in are HDFC Bank, ICICI Bank, Infosys, ITC, and Larsen & Toubro.
3. Analyst Research in Past Performance: The fund has provided the CAGR of 21.31% since its launch, following the S&P BSE 200 as its benchmark. The trailing returns of the scheme in the past three, five, and seven years were 8.79%, 16.97%, and 13.45%, respectively. The returns of the past three years are less than its benchmark and peers but it has outperformed in the five and seven years.
The annualized returns of the scheme in the past years were comparatively good than its benchmark. The returns of the year 2016 were 7.43% and 30.58% in the year 2017. As per the financial experts of MySIPonline, the fund has been at its best, providing better returns than its index and peers.
4. Fund Manager and His Strategies: The portfolio of ABSL Frontline Equity Fund growth has been managed by Mr Maheh Patil since November 2005. He follows the growth strategy to invest in any company. He selects the top 100 stocks of the market capitalization of NIFTY 50, understands the market movements, and invests skillfully. He focuses on various factors such as capital employed by the company, its RoE, growth potential, etc., before investing in it.
Mr Patil has 20 years of experience in the fund management. He also helps the fund house in equity research and corporate finance. He has done his CFA from ICFAI Hyderabad.
5. Investors’ Suitability: Those investors whose aim is to create wealth with the investment horizon of 5 years or more, can invest in the fund. You must have the appetite of tolerating a moderately high-risk because the fund particularly invests in the equity and equity-linked derivatives, which are highly volatile.
If you invest in the ABSL Frontline Equity Fund G via SIP mode, then it’s the best choice because the average investment value will be lower at the end. For more details regarding the fund and investments, connect with our experts at MySIPonline.