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(Earlier known as Aditya Birla Sun Life Top 100 Fund)
Introduction to the Fund
The Aditya Birla Sun Life Focused Equity Fund (Earlier known as Aditya Birla Sun Life Top 100 Fund) is an open-ended, large-cap equity-oriented mutual fund scheme investing in the stocks of the top 100 companies in India, based on their market size (market capitalization).
At any time, the fund invests in a maximum of 30 stocks chosen from the top companies in India. Since the fund invests in large, well-known companies, that have a good track record and are stable, it has a higher potential for growth. When compared to small companies that are just getting started, larger companies have a bigger foothold and organized corporate governance making them a relatively safer choice for investing.
The fund follows a growth cum value style of investing, thereby presenting investors with plenty of opportunities for capital growth.
The Aditya Birla Sun Life Focused Equity Fund
- About the Fund House
- Fund Information at a Glance
- Highlights of the Aditya Birla Sun Life Focused Equity Fund
- Investment Objective of the ABSL Focused Equity Fund
- Why choose from the top 100 companies in India?
- Who is this fund suitable for?
- Ideal Investment Horizon
- Asset Allocation Pattern of the Aditya Birla Sun Life Focused Equity Fund
- Investment and Stock Selection Strategy of the ABSL Focused Equity Fund
- Top 10 Holdings of the Aditya Birla Sun Life Focused Equity Fund (as on 30th April 2019)
- Sector Wise Allocation of the Aditya Birla Sun Life Focused Equity Fund (as on 30th April 2019)
- Plan Types and Options
- Fund Performance History
- FAQs on Aditya Birla Sun Life Focused Equity Fund
About the Fund House
Aditya Birla Sun Life Asset Management Company Limited (earlier known as Birla Sun Life Asset Management Company Limited) is a joint venture between Sun Life Financial, one of the leading international financial services organization based in Canada and Aditya Birla Group, one of the top business houses in India.
The JV brings together the experiences of Aditya Birla Group in the domestic Indian market and Sun Life’s global financial services expertise. The Aditya Birla Sun Life Mutual Fund (ABSLMF) was established in India in 1994 as a result of the partnership between Aditya Birla Group and Sun Life Financial.
Today, the company is one of the leading mutual fund houses in India with an AUM (Assets under Management) of Rs. 2423 billion in India, as in the last quarter of 2018. The fund house has a wide range of mutual fund schemes in India offering a mix of equity, debt, hybrid and balanced funds. The company manages investor folios worth Rs. 6.8 million.
ABCL has a pan-India presence with over 850 branches across the country. The company employs 18000+ employees as well as distributes its products via 2lakh+ agents and channel partners. ABCL oversees assets worth over 3000 billion rupees (as on 30th June 2019). The parent company Aditya Birla Group is a Fortune 500 company and is worth over the US $48.3 billion.
Fund Information at a Glance
Features of Aditya Birla Sun Life Focused Equity Fund
| Fund Type | Open-ended growth scheme |
| Fund Class | Large Cap Equities |
| Category | Wealth Creation |
| Fund launch date | 24th October 2005 |
| Investor Risk Profile | Medium to High |
| Investment Options | Growth and Dividend (Sweep out, Payouts and Reinvestments) |
| Default Investment Option | Dividend Reinvestment |
| Folios (Last Updated on 30th April, 2019) | 2,89,256 |
| AUM (Assets Under Management) (Last Updated on 30th April 2019) | Rs. 4,280.44 |
| Minimum Subscription Amount | Initial Purchase as well as switch-in: Rs. 1000 and after that in increasing multiples of Rs. 1. |
| Minimum Additional Investment | Rs. 1000 and in increasing multiples of Rs. 1 after that. |
| Benchmark Index | Nifty 50 |
| Entry Load | Nil |
| Exit Load | 1.00% of the applicable NAV - For switch out/redemption of units within 365 days of allotment Nil – For switch out/redemption of units after 365 days of allotment |
| Other Parameters | |
|---|---|
| Standard Deviation | 13.16% |
| Sharpe Ratio | 0.25 |
| Beta | 0.93 |
| Portfolio Turnover | 0.97 |
| Expense Ratio – Regular | 2.36 |
| Expense Ratio – Direct | 1.26 |
Highlights of the Aditya Birla Sun Life Focused Equity Fund
Large companies offer larger wealth creation opportunities – that is the mantra of the ABSL Focused Equity Fund. This equity-oriented mutual fund invests in the stocks of the top 100 companies in India, presenting investors with stable and reliable growth opportunities.
Salient Highlights of the Fund:
- Invests in the top 100 companies in India, based on market size
- Presents investors with a diversified portfolio
- Ample opportunities for larger wealth creation with exposure to equities
Investment Objective of the ABSL Focused Equity Fund
The Aditya Birla Sun Life Focused Equity Fund offers medium to long-term capital appreciation, by investing primarily in the equities and equity-oriented securities of the top 100 companies in India. It provides investors with a diversified portfolio and ample opportunities for capital appreciation.
Why choose from the top 100 companies in India?
The general rule of thumb in the equity market is that larger companies have been in the industry for longer times, thereby aren’t volatile like small startups. Additionally, large companies have better reliability and a good track record of corporate management.
The Aditya Birla Sun Life Focused Equity Fund chooses the top 100 companies in India and invests in their stocks, thereby providing investors with the opportunity for wealth creation via a capital appreciation in the medium to long term.
Who is this fund suitable for?
This Aditya Birla Sun Life Focused Equity Fund is ideal for investors who are:
- Looking for medium to long-term capital growth
- Looking to add equity and equity-related investments to their portfolio
- Looking to diversify their portfolio
- Looking to supplement their equity portfolio with broad, larger market equities
Risk-o-meter
This indicates the risk level of the Aditya Birla Sun Life Focused Equity Fund. The risk level is
Moderately High (which means that the principal is at moderately high risk)
*If you are unsure if this fund is right for you, make sure to consult your financial advisor, before investing in it.
Ideal Investment Horizon
The Aditya Birla Sun Life Focused Equity Fund has the potential to offer maximized returns when an investor stays invested for three years or more.
Asset Allocation Pattern of the Aditya Birla Sun Life Focused Equity Fund
| S.No. | Instrument Class | Asset Allocation | Risk |
|---|---|---|---|
| 1 | Equity and equity-oriented investments (maximum 30 companies) | 65% to 100% | Medium to High |
| 2 | Money Market instruments and Debt Securities | 0% to 35% | Low to Medium |
Investment and Stock Selection Strategy of the ABSL Focused Equity Fund
The Aditya Birla Sun Life Focused Equity Fund adopts a bottom-up strategy to investing. The scheme primarily focuses on identifying the top 100 companies in India based on their market size. The fund manager and team then further refine this list by identifying companies that have a strong competitive business in the domestic market and with sound management teams.
The mutual fund then chooses stocks from this list based on internal analysis of the following criteria:
- Stability of the business
- Nature of the business
- Trustworthy management with an established track record
- Prospects for future scalability and growth
- Financial returns in the last few years
- Potential for growth
- Future valuations
Top 10 Holdings of the Aditya Birla Sun Life Focused Equity Fund (as on 30th April 2019)
| S.No. | Issuer | Percentage of Net Assets |
|---|---|---|
| 1 | HDFC Bank Limited | 9.42% |
| 2 | Infosys Limited | 6.36% |
| 3 | ICICI Bank Limited | 6.02% |
| 4 | ITC Limited | 5.68% |
| 5 | Larsen & Tourbo Limited | 5.35% |
| 6 | Housing Development Finance Corporation Limited | 4.35% |
| 7 | Maruti Suzuki India Limited | 4.25% |
| 8 | HCL Technologies Limited | 3.34% |
| 9 | Dabur India Limited | 3.28% |
| 10 | Yes Bank Limited | 3.20% |
Sector Wise Allocation of the Aditya Birla Sun Life Focused Equity Fund (as on 30th April 2019)
| S.No. | Sector | Percentage of Net Assets |
|---|---|---|
| 1 | Banks | 20.31% |
| 2 | Software | 11.30% |
| 3 | Finance | 10.94% |
| 4 | Consumer Non-Durables | 8.96% |
| 5 | Auto | 6.72% |
| 6 | Pharmaceuticals | 5.86% |
| 7 | Construction Project | 5.35% |
| 8 | Petroleum Products | 3.93% |
| 9 | Power | 2.91% |
| 10 | Ferrous Metals | 2.66% |
Plan Types and Options
The Aditya Birla Sun Life Focused Equity Fund has two plan types:
- Regular plan
- Direct plan
Both these plans have a common portfolio but separate NAVs. While applying for the fund, investors have to choose the type of plan they are subscribing for. Both the above plans have two sub-classifications:
- Growth option
- Dividend option – Payout, Sweep, and Reinvestment
Note that:
The direct plan is available only to investors who subscribe or purchase units directly from the mutual fund and not via a distributor. The default option of the ABSL Focused Equity Fund is the Dividend Option (Reinvestment Facility). If an applicant has not mentioned the growth or dividend option, the dividend option (with reinvestment) is selected by default.
Fund Performance History
Annualized Returns
Here are the compounded annualized returns for the Growth Plan of the ABSL Focused Equity Fund against the Nifty 50 TRI benchmark.
| Returns | Last 1 Year | Last 3 Years | Last 5 Years | Since Inception |
|---|---|---|---|---|
| Aditya Birla Sun Life Focused Equity Fund (inception: 24th October, 2005) | 3.75 | 12.66 | 14.25 | 14.15 |
| Nifty 50 TRI | 10.84 | 15.91 | 13.32 | 13.85 |
| Aditya Birla Sun Life Focused Equity Fund – Direct Plan (inception: 1st January 2013) | 4.75 | 13.93 | 15.46 | 14.93 |
| Nifty 50 TRI | 10.84 | 15.91 | 13.32 | 12.71 |
Dividend History
| Declared on Date | 23-03-2018 | 28-07-2017 | 22-07-2016 |
|---|---|---|---|
| Dividend Yield in the Regular Plan | 12.44% | 9.95% | 8.13% |
| Dividend (Rs) per unit | 2.10 | 1.91 | 1.41 |
| Cum Dividend NAV | 16.88 | 19.20 | 17.34 |
Performance of the Regular Plan-Growth Option
| Time Period | One year | Three years | Five years | Since inception |
|---|---|---|---|---|
| Aditya Birla Sun Life Focused Equity Fund | 5.97 | 9.49 | 17.81 | 14.57 |
| Value of standard investment of Rs. 10,000 | 10597 | 13125 | 22711 | 56155 |
| Benchmark Nifty 50 TRI | 14.09 | 10.00 | 14.28 | 13.92 |
| Value of standard investment of Rs. 10,000 | 11409 | 13309 | 19507 | 52257 |
| Additional Benchmark – S&P BSE Sensex TRI | 16.21 | 9.90 | 14.36 | 13.95 |
| Value of standard investment of Rs.10,000 | 11621 | 13275 | 19572 | 52420 |
SIP Performance of Regular Growth Plan (Assuming a SIP investment of Rs. 10,000 every month)
| Time Period | One year | Three years | Five years | Since inception |
|---|---|---|---|---|
| Total Amount Invested | Rs. 1,20,000 | Rs. 3,60,000 | Rs. 6,00,000 | Rs. 15,30,000 |
| Market value of invested amount | Rs. 1,18,926 | Rs. 4,19,519 | Rs. 8,28,701 | Rs. 38,26,224 |
| Scheme Returns (CAGR) | -1.67 | 10.23 | 12.91 | 13.48 |
| Nifty 50 returns | 9.41 | 14.15 | 12.79 | 11.73 |
| S&P BSE Sensex TRI | 13.24 | 15.13 | 12.98 | 11.84 |
*Note that – Past performance is not indicative of future performance and may or may not be sustained in future.
FAQs on Aditya Birla Sun Life Focused Equity Fund
1. How to find the latest NAV of my investments?
You can check the latest NAV prices by sending a text message to 567679. Type the following message: NAV <292G> and send it to the above number. You will receive the latest NAV prices via SMS. Note that the SMS may be charged as a premium text message, based on your mobile plan type.
2. How to invest in the Aditya Birla Sun Life Focused Equity Fund?
Investors can choose any one of the following methods:
- Apply online – fill in the application form, upload supporting documents, and pay the fees online.
- Call toll-free number 1800 – 270 – 7000 to speak with an investment advisor and to start the application process.
- Visit the nearest branch of Aditya Birla Sun Life and fill in the application form in person.
- Reach out to the customer care team by messaging the Whatsapp number 88288 00033 to start the application process.
3. What about the liquidity options of this fund?
The Aditya Birla Sun Life Focused Equity Fund is an open-ended scheme. The fund offers switch-in/purchase and switch-out/redemption of portfolio units based on prevailing NAV prices. This allows unitholders the flexibility to purchase or redeem the units at any time. All redemption proceeds are dispatched within 10 days of receiving and accepting the redemption request.
4. Does this fund assure returns?
No mutual fund plan offers guaranteed returns. All mutual fund investments are subject to market risks. Make sure to read the fund document carefully before investing in mutual fund schemes.
5. What are the minimum amounts for purchase or redemption of units in this fund?
For Fresh Purchase (including switch-in): The minimum amount is Rs. 1000 and after that in multiples of Rs. 1
For Additional Purchase (including switch-in): The minimum amount is Rs. 1000 and thereafter in multiples of Rs. 1
For Repurchase: In multiples of Rs. 1 or 0.001 units for all plans and options
*Disclaimer: Mutual fund investments are subject to market risks. Make sure to read the scheme document carefully and make the right investments. If you have any further doubts, get in touch with Aditya Birla Sun Life Mutual Fund by dialling the toll-free number 1800 270 7000.
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