Aditya Birla Sun Life Frontline Equity Fund: If you want to invest for the long term and are mainly looking for investment options in largecap stocks, then Aditya Birla Sun Life Frontline Equity Fund can be a strong option. This fund has helped investors create a corpus of up to Rs 1 crore with a monthly SIP of just Rs 3200. Let us know about the features of this fund and its investment strategy.
How to create a fund of Rs 1 crore from SIP of Rs 3200?
Aditya Birla Sun Life Frontline Equity Fund was launched 22 years ago, and since then it has given an annualized return of 19.59%. If you had started a monthly SIP of Rs 3200 in this fund 22 years ago, the value of your investment today would have been around Rs 1.02 crore. You can check its complete calculation here:
- Initial lump sum investment: Rs 50,000
- Monthly SIP: Rs 3200
- Investment period: 22 years
- Total investment (in 22 years): Rs 8,94,800
- Total Fund Value: Rs 1,02,55,693 (Rs 1.02 crore)
- Annulized return on lump sum+SIP in 22 years: 17.79%
Also read: NFO Launch: Investment opportunity in every segment from large cap to micro cap, what else is special in the investment strategy of this NFO.
Highlights of Aditya Birla Sunlife Large Cap Fund
– Fund Name: Aditya Birla Sun Life Frontline Equity Fund (Regular Plan)
– Fund age: 22 years 1 month
– Fund Rating: 3 Stars (Value Research)
– Returns (since launch): 19.59%
– Minimum investment: Rs 100
– Minimum SIP: Rs 100
– Risk level: Very High Risk
– Expense Ratio (Regular Plan): 1.63%
– Expense Ratio (Direct Plan): 0.96%
Also read: HDFC MF’s Multibagger Scheme, how to make a fund of Rs 5 crore from SIP of Rs 4000? Investing only in big companies
Asset Allocation
98.24% of this fund is invested in equity, the remaining 1.17% is invested in cash and cash-like assets and 0.59% is invested in debt. Additionally, the fund always invests at least 80% of its corpus in large cap companies, which gives it stability.
Current asset allocation of the fund
– Large Cap: 88.74%
– Mid Cap: 11.05%
– Small Cap: 0.22%
Top Holdings
– HDFC Bank: 7.51%
– ICICI Bank: 7.42%
– Infosys: 6.47%
– Reliance Industries: 5.32%
– Larsen & Toubro: 4.60%
Also read: NFO Alert: Subscription opened in NFO of Kotak Mutual Fund, opportunity to participate in the growth of multinational companies.
What is the investment strategy?
The main objective of Aditya Birla Sunlife Frontline Equity Fund is to achieve long-term capital growth. The fund keeps Nifty 50 as its benchmark and attempts to maintain diversified investments across different industries and sectors. The fund’s strategy is focused on giving better returns to investors in the long run by investing in equity.
For whom is this fund suitable?
– This fund is suitable for those investors who want to invest for at least 5 years or more.
– This fund mainly invests in large cap companies, hence it is less affected during market downturn compared to funds investing in small companies.
– Investment in this fund should be done only through SIP so that the impact of market fluctuations can be reduced.
– This fund is not for those investors who want to withdraw money from investment before 5 years.
Also read: Mutual Fund Investment: How to choose the right scheme in the crowd of Momentum Index Funds, what is the best option for you?
decide wisely
Despite being a large cap fund, it is classified as very high risk as most of the investments are made in equities, hence it should be chosen only for long term investments. If you want to invest in largecap equity funds for a long term with patience, then you can consider including this fund in your portfolio. But before deciding to invest, keep in mind your risk appetite. Also remember that past returns of an equity fund cannot be considered as a guarantee of similar performance in future.
(Disclaimer: The purpose of this article is only to provide information and not to advise investment in any fund. Investments made in equity mutual funds are directly affected by the ups and downs of the stock market. Any investment decision should be taken by your investment advisor. Do it only after taking advice from.)
