Aditya Birla Sun Life MNC Fund

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.

Investment Objective of the ABSL MNC Fund

The ABSL MNC Fund is an open-ended mutual fund growth scheme. The fund’s primary objective is capital growth for investors. It achieves this by investing in the equities of multinational companies (MNCs) via a strategic research-oriented approach.

MNCs (Multi-National Corporations) are known for performing well, even when the market conditions are bad. This is why MNCs are one of the preferred stocks for investors, thereby enjoying higher valuations in the market.

MNCs are valued higher thanks to their efficient corporate governance, strong finances, consistent growth, access to the latest technology, and efficient accounting policies. Investing in MNCs helps investors achieve long-term capital appreciation. The Aditya Birla Sun Life MNC fund helps investors enjoy significant returns and capital growth by investing in the equities of a handpicked group of MNCs.

Historically, only companies that perform exceptionally well have grown to become MNCs. Multi-national conglomerates enjoy premium status not just among investors but also consumers. These companies use their decades of experience and the power of the latest technology to expand their presence across countries.

In India, MNCs have made significant investments and developments. The developing economy of our country presents plenty of growth opportunities for MNCs. As MNCs grow their footprint in the country, investing in the stocks of well-performing MNCs will provide investors with handsome returns.

Salient Highlights of the Fund:

• This fund helps investors enjoy the confidence and stability of investing in the stocks of MNCs.
• Strong performance track record.
• Diversified equity-based portfolio.

When compared to other types of businesses, multinational conglomerates (MNCs) offer better stability and use cutting-edge global technologies for businesses. Hence, MNCs offer a higher potential for growth.

The Aditya Birla Sun Life MNC Fund invests predominately in the securities of MNCs, thereby achieving long-term capital growth. The fund chooses MNCs that have a large global footprint and are present in the Indian domestic market.

When compared to other mutual fund schemes, the ABSL MNC Fund has a unique portfolio composition, thereby offering relatively stable performance at lower volatility.

Risk-o-meter

This indicates the risk level of the Aditya Birla Sun Life MNC 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.

This Aditya Birla Sun Life MNC Fund is ideal for investors who are:

• Looking for long-term capital growth
• Looking to add equity and equity-related investments to their portfolio
• Looking to diversify their portfolio by investing in the securities of stable MNCs
• Looking to supplement their equity portfolio with equities of MNCs
• Willing to increase their risk quotient by investing in thematic equities

Ideal Investment Horizon

The Aditya Birla Sun Life MNC Fund has the potential to offer maximized returns when an investor stays invested for three years or more.

The fund focuses on growth, quality, and relative valuation, with a high emphasis on generating high ROE, along with efficient cash flows and capital allocation. The fund is open to investing in stable MNCs even during bad times, as the selected MNCs have a high potential of improving financials. The fund uses active weights to generate better risk-adjusted returns.

Top 10 Holdings of the Aditya Birla Sun Life MNC Fund (as on 30th April 2019)

Sector Wise Allocation of the Aditya Birla Sun Life MNC Fund (as on 30th April 2019)

Asset Allocation Pattern of the Aditya Birla Sun Life MNC Fund

Here are the compounded annualized returns for the Growth Plan of the ABSL MNC Fund against the Nifty MNC TRI benchmark.

Dividend History

Investment Performance of the Regular Plan-Growth Option

SIP Performance of Regular Growth Plan

(Assuming a SIP investment of Rs. 10,000 every month)

*Note that – Past performance is not indicative of future performance and may or may not be sustained in future.

The Aditya Birla Sun Life MNC 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.

1. How to invest in the Aditya Birla Sun Life MNC 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.

2. What are the specific risk factors of investing in this fund?

The ABSL MNC Fund invests in a select group of MNCs. This means the fund’s performance is directly linked to the performance of these companies. There are times when several leading MNCs opt for shares de-listing and buy-backs. This could cause the shrinking of the investment opportunities available in this category.

3. Does the ABSL MNC Fund offer guaranteed returns?

No. Just like all other mutual fund investment schemes, the ABSL MNC Fund does not guarantee returns, as the returns are linked to market performance.

4. What is the ideal investment horizon for investors investing in this fund?

While you can invest in this fund for short durations, it’s highly recommended that you stay invested in this fund for five years or more, to get the maximum returns.

5. What is the stock selection strategy followed by the fund manager for the ABSL MNC Fund?

p The emphasis of this mutual fund scheme is in identifying MNCs that exhibit good potentials for future growth as well as sound corporate governance. The fund manager and team pick companies that have a superior track record of performance, along with long-term fundamentals and short-term opportunities.

Liquidity plays a crucial role in the investment decision. Hence a large proportion of the fund’s assets are in liquid large-capitalization stocks like established and emerging blue-chip stocks. Apart from liquidity considerations, the fund also looks at growth stocks that have the potential for generating higher returns. A small portion of the fund is invested in IPOs and other types of primary market offerings to meet fund objectives.

*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 dialing the toll-free number 1800 270 7000.