Aditya Birla Sun Life Equity Fund: A Smart Investment Choice?

Aditya Birla Sun Life Mutual Fund offers a range of equity funds, including the Aditya Birla Sun Life PSU Equity Fund, which is an open-ended equity scheme that invests in Public Sector Undertakings (PSUs). Equity funds are a type of mutual fund that invests primarily in stocks and equity-related instruments, offering the potential for higher returns over the long term. Aditya Birla Sun Life equity funds are suitable for aggressive investors with a long-term investment horizon who are comfortable with moderate to high risk. The minimum investment amount varies across different funds, with some funds requiring as little as ₹100 for a Systematic Investment Plan (SIP) or ₹500 for a lump-sum investment.

Aditya Birla Sun Life PSU Equity Fund

Investment Objective

The investment objective of the Aditya Birla Sun Life PSU Equity Fund is to provide long-term capital appreciation by investing in equity and equity-related instruments of Public Sector Undertakings (PSUs). The scheme does not guarantee or indicate any returns, and there is no assurance that the scheme's objectives will be achieved.

Who Should Invest?

The Aditya Birla Sun Life PSU Equity Fund is suitable for investors seeking long-term capital appreciation, participation in the growth of public sector undertakings, and inflation-beating returns. Investors should also be comfortable with high levels of risk to achieve long-term investment returns.

Taxation

If you redeem your investment within one year, returns are taxed at 20%. If you redeem after one year, returns exceeding Rs 1.25 lakh in a financial year are taxed at 12.5%.

How to Invest

You can invest in the Aditya Birla Sun Life PSU Equity Fund through two options: the Direct Plan or the Regular Plan. The Direct Plan involves purchasing units of the fund directly from Aditya Birla Sun Life Mutual Fund, while the Regular Plan involves investing through a distributor or broker of your choice. Both plans have a common portfolio but separate NAVs due to different expense ratios. Your choice of plan will impact the returns from your investment.

Aditya Birla Sun Life ELSS Tax Relief 96 Fund

Aditya Birla Sun Life Mutual Fund is a joint venture between Aditya Birla Capital and Sun Life AMC Investments Inc. The company offers more than 40 mutual fund schemes, including the best Aditya Birla Sun Life equity mutual funds.

ELSS stands for Equity Linked Saving Scheme. This type of fund has a statutory lock-in of three years and offers tax benefits. The Aditya Birla Sun Life ELSS Tax Relief 96 Fund aims to allocate a minimum of 80% of its net assets to equity and equity-related instruments, with the remaining 20% invested in debt and money market instruments.

The fund has a combination of top-down and bottom-up approaches when selecting stocks. The top-down approach focuses on macroeconomic factors, economic changes and trends, key policy changes, and infrastructure spending. The bottom-up approach seeks to identify companies with high profitability and scalability supported by a sustainable competitive advantage.

The fund is suitable for investors who are seeking long-term capital growth and investments in equity and equity-related securities, with tax benefits under Section 80C of the Income Tax Act, 1961.

As of 29 August 2023, the NAV of the fund was ₹167.1000, and the AUM was ₹14,253 crore as of 31 July 2023. The fund has a Very High-risk level according to the Riskometer.

The minimum SIP amount for the fund is ₹500, and there is a lock-in period of three years. The expense ratio is 1.69%.

Aditya Birla Sun Life Small Cap Fund

The fund's portfolio is largely conservative, with most holdings in Large Cap stocks and debt instruments. As of 31-Jul-2023, Aditya Birla Sun Life Small Cap Fund had invested 91.19% in Equity and 8.81% in Cash & Cash Equivalents. The expense ratio of the fund is 1.92%.

Aditya Birla Sun Life Pure Value Direct Fund

As of October 2024, the fund has an Asset Under Management (AUM) of ₹3,59,537 crore and the latest Net Asset Value (NAV) is ₹152.86. The minimum Systematic Investment Plan (SIP) investment is set to ₹100, while the minimum lump sum investment is ₹1,000. The fund has a high-risk rating and an exit load of 1% if redeemed within 90 days. The expense ratio is 1%.

The fund has generated 3-year and 5-year annualised returns higher than the category average, with a higher alpha of 5.49. However, 1-year and 10-year annualised returns are lower than the category average. The fund's performance over the past three years has been 23.08% annualised, and 25.12% over the past five years.

Overall, Aditya Birla Sun Life Pure Value Direct Fund offers investors an opportunity to generate long-term capital appreciation by investing in undervalued stocks. The fund has a strong track record, outperforming its category average in 3-year and 5-year returns. However, it is important to note that the fund carries a high-risk rating and investors should carefully consider their investment goals and risk tolerance before investing.

Aditya Birla Sun Life Frontline Equity Direct Fund

Aditya Birla Sun Life Frontline Equity Fund is a mutual fund that seeks long-term growth of capital, through a portfolio with a target allocation of 100% equity. The fund aims to be as diversified across various industries and sectors as its chosen benchmark index, Nifty 50. The fund's holdings are mostly in large-cap stocks and debt instruments, which means it follows a conservative investment strategy.

Aditya Birla Sun Life Frontline Equity Fund can be purchased from the website of Aditya Birla Sun Life Mutual Fund. You can also buy mutual funds through platforms like MF Central, MF Utility, and others. Most banks also act as mutual fund distributors, so you can connect with your bank for assistance.

Aditya Birla Sun Life Mutual Fund is the primary investment manager for Aditya Birla Sun Life Mutual Fund, which is a registered trust. The company registered a total asset under management of Rs.269,278.03 crore as of March 2021. Moreover, the AMC offers more than 40 mutual fund schemes, including the best Aditya Birla Sunlife equity mutual funds.

Equity funds are a classification of mutual funds that invest in shares of different companies. This sub-type is also known as growth funds. Per SEBI, equity funds must invest at least 65% of their assets in equity and related instruments. This proportion can vary depending on the type.

There are various types of equity funds premised on the investment style and market cap of underlying companies. Based on the investment approach, there are two types: actively and passively managed funds. In the case of the former, a fund manager is actively involved in market research and shortlists the best organisations to invest in. Passively managed equity mutual funds mimic portfolios of market indexes such as Sensex and Nifty 50.

On the basis of market capitalisation, the best Aditya Birla Sunlife equity mutual fund has three sub-types, small-cap, mid-cap, and large-cap. Small-cap funds invest in small-cap companies, mid-cap schemes allocate assets to mid-cap companies, and so on.

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