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Introduction to the Fund

Aditya Birla Sun Life Manufacturing Equity Fund is an open-ended equity-oriented mutual fund that invests in the manufacturing sector. This fund aims to provide investors with the biggest benefits of the reviving and resurgence of the manufacturing sector in India.

The primary objective of this mutual fund plan is to generate long-term capital appreciation for investors. The fund invests predominately in equity and equity-oriented stocks of companies that are involved in manufacturing in India. Just like all other mutual fund investments, this fund is subject to market risks, and there is no guarantee of returns.

Fund TypeOpen-Ended
Asset ClassEquities
CategoryThematic investments (manufacturing)
Minimum InvestmentRs. 1000
Current NAV11.93 (last updated on 8th August, 2019)
Fund Inception31st January 2015
Entry LoadNil
Exit Load

For switching/redemption of units within 1 year of allotment – the exit load charges are 1% of the applicable NAV.

For switching/redemption of units after 1 year of allotment – the exit load charges are Nil.

Fund Highlights

  • The Aditya Birla Sun Life Manufacturing Equity Fund invests in Indian companies that are engaged in manufacturing in the country.
  • The fund offers a diversified portfolio.
  • It has high potentials for wealth generation.

Who is this fund suitable for?

The ABSL Manufacturing Equity mutual fund is ideal for investors:

  • Looking for long-term capital growth
  • Looking for exposure to equities in the manufacturing sector
  • Who can afford high-risks, for high-returns

Let’s take a look at the top reasons why investors should invest in this fund from Aditya Birla Sun Life.

Benefit from India’s fast-growing manufacturing sector

India is all set to become the next manufacturing superpower overtaking other manufacturing-oriented countries like China, Vietnam, Thailand, and Bangladesh. The government has emphasized time and again the importance of the manufacturing sector in India, and has introduced several national initiatives like “Make in India,” to speed up the growth of manufacturing in the country.

According to the National Manufacturing Policy, the central government is planning to improve manufacturing so that it contributes nearly 25% of the GDP. All this spells a good future for the manufacturing industries in India.

As manufacturing is going to grow at a never-before rate its high-time that individual investors benefitted from this sector.

1. Increasing GDP Rates

Industry experts and financial analysts predict that India’s GDP growth is on an upward trajectory and will constantly grow over the next five years.

2. The Election 2014 & 2019 – Major Game Changers

India got its first majority government in three decades with the central elections of 2014. Following the massive victory of the ruling party in 2019, there is a major surge in investor optimism. This has led to a huge growth in the national economy as well as equity markets.

3. Significant Improvements in Domestic Factors

On the domestic front, India has seen major improvements in several macro parameters like foreign currency reserves, fiscal deficit, interest rates, inflation, and CAD. This has led to huge growth for medium and long-term equity investors.

4. Spotlight on Manufacturing

The central government has time and again stated that revival of the Indian manufacturing sector is one of the major agendas of this government. According to the NMP (National Manufacturing Policy), the government has major plans to revive the share of manufacturing in the country’s GDP from the current 15% to 25%. This will help to create over 100 million jobs in the manufacturing domain by the year 2022.

5. Ease of Interest Rates

The RBI has cut down interest rates on loans. This will help manufacturing companies quicken their pace of production, increasing growth, and profitability.

6. Manufacturing linked to Growth

When compared to other industries, manufacturing is better linked to the overall growth of the country. As India is all set to become an economic superpower in the upcoming decade, more and more manufacturing units will become a part of the country’s national economic fabric.

7. FDI and FII Inflows

India has received a whopping US $312 billion as FDI (Foreign Direct Investment) in the ten years from FY 2004 to FY 2014. As India has relaxed FDI and FII norms, it’s expected that major fund flows will come into the country. Countries like the USA, Japan, France, and China have committed to investing big time in the country, in the next five years.

Apart from these seven reasons, there are several other factors that play a huge role in making the Indian manufacturing dream a reality. These factors include:

  • India has a low-cost infrastructure for manufacturing compared to other third world countries. This will play a huge role in attracting foreign investment in this sector.
  • India has a huge export and import opportunities across sectors.
  • Additionally, India has a fast-growing local consumption market that will help in boosting manufacturing and production in the country.
  • The majority government at the centre is focused on industries that lead to plenty of job creation, and manufacturing is the top sector of choice.
  • India has a huge working population. In fact, India accounts for 25% of the world’s total working-age population. It is expected that nearly 1 million young Indians will join the workforce in the next years. This huge human resource offers labour at cheap costs.

1. Favourable Demographics

Contrary to European nations, Japan, and other countries that have an ageing population, India is a young nation. Around 64% of the country’s total population fall in the working-age brackets – from 15 to 54 years. This makes India the ideal destination for manufacturing, as companies can easily get young, skilled, English speaking workforce.

2. Low cost of Labour

This is one of the biggest advantages for companies manufacturing in India. The wages for manufacturing labour in India is one of the cheapest in the world. The average wage for an entry-level employee in manufacturing in India is just the US $1.5 per hour.

3. A Fast-Growing Domestic Market

India has a fast-growing domestic market, thanks to the huge increase in middle-class with disposable incomes. It’s predicted that the local consumption market will grow by 4x times, making India a vital market for both domestic and international manufacturers.

4. Abundant Natural Resources

India is a vast nation blessed with abundant natural resources. From coal reservoirs to minerals like bauxite, aluminium, iron ore and natural gas, India is blessed with plenty of natural resources. This makes the country self-reliant, making it an ideal choice for becoming a manufacturing powerhouse.

5. Ease of Doing Business

The central government has relaxed several norms for foreign companies doing business in India. This makes the country ideal for foreign companies interested in manufacturing here. With the ease of doing business and falling interest rates, manufacturing firms are likely to see major growth and profitability.

6. Favourable Currency

The rupee has been falling steadily against the dollar. This makes Indian exports incredibly affordable in the international market, which is a huge boost for Indian manufacturing.

This mutual fund scheme from Aditya Birla Sun Life presents investors with an incredible opportunity to make their long-term investment goals come true. If you are an individual investor looking to benefit from the fast-growing Indian manufacturing sector, then this fund is perfect for you.

It helps you maintain a diversified portfolio with equity investments from a range of twenty-two sectors. The fund house and team will handpick stocks from leading manufacturing companies. It’s one of the first mutual fund schemes in India poised to benefit from the growth of manufacturing in the country.

Sectors that the ABSL Manufacturing Equity Fund Invests in:

Here are the top sectors that this fund invests in:

  • Automobiles and auto ancillary parts
  • Capital goods
  • Cements
  • Consumer goods
  • Defence
  • Metals
  • Pharmaceuticals
  • Railways
  • Textiles and many more

The ABSL Manufacturing Equity Fund uses the S&P BSE 200 TRI benchmark index to maintain diversification of your portfolio, helping you avoid concentration in a particular sector. This benchmark gives stability to the portfolio.

Portfolio and Sector Holdings

Top 10 Holdings of the ABSL Manufacturing Equity Fund (Last Updated on 30.6.2019)

S.No.IssuerPercentage of Net Assets
1Hindustan Unilever Ltd.5.71
2GlaxoSmithKline Consumer Healthcare Ltd.5.43
3Asian Paints Ltd.4.34
4MRF Ltd.4.28
5Reliance Industries Ltd.4.21
6Heidelberg Cement India Ltd.3.93
7Hindustan Zinc Ltd.3.76
8ITC Ltd.3.68
9Century Textiles & Industries Ltd.3.6
10Tata Steel Ltd.3.27

Top 10 Sector Holdings of the ABSL Manufacturing Equity Fund (Last Updated on 30.6.2019)

S.No.SectorPercentage of Net Assets
1Consumer products40.6%
4Metals and mining10.8%
5Building materials5.9%
7Oil & Gas4.2%
8Consumer service3.2%

Fund Performance

As of June 2018, here’s the fund’s performance:

Aditya Birla Sun Life Manufacturing Equity Fund
Parameters1 year3 yearsSince inception
Aditya Birla Sun Life Manufacturing Equity Fund3.7010.499.08
Value of standard investment of Rs. 10,00010,3701349013450
Benchmark S&P BSE 500 TRI11.5411.458.91
Value of standard investment of Rs. 10,000111541384313380
Benchmark Nifty 50 TRI14.0910.007.31
Value of standard investment of Rs. 10,000114091330912720

*Note that the above performance values are based on the regular plan – growth option. The past performance is not an indicator of future performance. Loads and taxes are not included when computing the return values mentioned above. Different plans have different expense structure.

1. What type of mutual fund is the ABSL Manufacturing Equity Fund?

It’s a wealth creation fund. It’s ideal for investors who can afford to lock-in their capital for a long time and can bear high risks.

2. 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.

3. Can I stop the fund midway?

Yes. However, depending on when you are stopping the fund, you may or may not have exit charges. The exit charges for withdrawal of fund units partially or completely after one year of allocation is NIL.

4. What are the types of plans/options offered by the ABSL Manufacturing Equity Fund?

The ABSL Manufacturing Equity Fund offers two types of plans:

  • Regular plan
  • Direct plan

Both plans have a common portfolio but separate NAVs. At the time of fund allocation, you have to choose the type of plan which you want to subscribe for.

Both the above plans offer the following options:

  • Dividend option for payouts and reinvestments
  • Growth option

Note that the direct plan is available only for investors who purchase the scheme directly with Aditya Birla Sun Life and is not available for investors who purchase via a distributor.

5. How to invest in the Aditya Birla Sun Life Manufacturing 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.

*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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