Aditya Birla Sun Life Advantage Fund - Regular Growth: A Fund for Money Growth
Diverse equity funds, unlike most of the other mutual funds do not restrict the investment into a specific sector. The funds are thus not tied down to the fortunes of a particular sector but can be part of the economic growth across the industry. The corpus of the fund is invested in large cap, mid cap and small cap companies and across various sectors. This provides the benefit of economic gains by earning on the profits earned across the sectors. The impact of any losses from a poor performing sector can be overcome by the profits gained out of other good performing sectors. Therefore, diversified mutual fund offer higher returns on investment when compared with most of the other equity mutual funds. These funds are ideally suited for those planning for long term investments like child’s higher education, retirement plans etc.
Understanding Aditya Birla Sun Life Advantage Fund - Regular Growth
Aditya Birla Sun Life Advantage Fund-Regular growth comes under the Equity funds – diversified category. The fund was launched on 24.02.1995 and has been operational for over 20 years. The minimum investment into the fund is Rs. 1000. For any further investment the minimum amount is Rs.1000.
Being a diverse equity fund, the corpus of the fund is invested across various sectors. Banking sector has the highest percentage of the investment with nearly 20 %. Finance, Auto and Petroleum are the other sectors which has the highest investment. Around 50 % of the corpus is invested into these four sectors. Apart from these, Cement, Consumer – non durables, Pharmaceuticals, Gas, Non-Ferrous metals etc are other sectors into which a major share of the investments are made.
Investing across different companies irrespective of the size of capital is another aspect of a diverse equity fund. Accordingly Aditya Birla Sun Life Advantage Fund invests into a very diverse portfolio of companies. HDFC Bank Ltd, State Bank of India, Hindustan Petroleum Corporation Ltd, Maruti Suzuki India Ltd, Reliance Industries Ltd, Eicher Motors, Yes Bank ltd, ICICI Bank Ltd, Natco Pharma Ltd are top 10 companies into which the investments are made. These companies have a share of nearly 35 % of the total investments. The rest of the corpus is spread across various other companies with small, medium and large capitalization.
Performance of Aditya Birla Sun Life Advantage Fund
Consistent good returns over a long period of time is a hallmark of high performing equity funds. Aditya Birla Sun Life has been delivering consistent and high returns over more than 20 years of its existence. This is evident from the 18.13 % returns since the time of its inception.
Source: Swaraj Wealth Research
This is higher than the average returns of the diverse equity category which is 14.89 % as well as S&P BSE 200 bench mark index’s returns of 13.88 %. The 10 year average returns of 23.75 % are also higher in comparison to the 18.5 % and 15.08 % returns respectively. The fund has been especially performing above the industry standard for over the last decade.
The year on year performance of the fund has also been at par if not higher than the average performance of the category and the S&P BSE Index benchmark.
Source: Swaraj Wealth Research
The fund has shown a growth of 41.85% during the year 2017, higher than the average returns of the diversified equity category. The year on year returns of the last five years have been consistently higher than that of the category’s as well as industry benchmark.