The document discusses the performance of the Birla Sun Life Frontline Equity Fund, an open-ended growth equity scheme. It has delivered high returns of 30.7% annually over 7 years, significantly outperforming its benchmark. The fund's success is due to dynamic sector allocation, stock selection, and market timing. It provides diversification across sectors in line with the BSE 200 index.
The document discusses the performance of the Birla Sun Life Frontline Equity Fund, an open-ended growth equity scheme. It has delivered high returns of 30.7% annually over 7 years, significantly outperforming its benchmark. The fund's success is due to dynamic sector allocation, stock selection, and market timing. It provides diversification across sectors in line with the BSE 200 index.
The document discusses the performance of the Birla Sun Life Frontline Equity Fund, an open-ended growth equity scheme. It has delivered high returns of 30.7% annually over 7 years, significantly outperforming its benchmark. The fund's success is due to dynamic sector allocation, stock selection, and market timing. It provides diversification across sectors in line with the BSE 200 index.
The document discusses the performance of the Birla Sun Life Frontline Equity Fund, an open-ended growth equity scheme. It has delivered high returns of 30.7% annually over 7 years, significantly outperforming its benchmark. The fund's success is due to dynamic sector allocation, stock selection, and market timing. It provides diversification across sectors in line with the BSE 200 index.
Birla Sun Life Frontline Equity Fund registers 520% growth in seven
years (Past performance may or may not be sustained in the future) Birla Sun Life Frontline Equity Fund has been one of the leading performer across market cycles which include surging bull market, crashing bear market and a fledgling new rally. The open-ended growth scheme looks for steady and consistent growth from investments especially in today’s ever-changing environment. It has been among the best performers in the diversified equity fund category over past 3 years with CAGR returns of 18% versus 11% from BSE200 Index, as on 30th June. The fund has declared a total dividend of 240% since inception. That is 6 dividends in 7 years.
Birla Sun Life Frontline Equity Fund’s performance is attributable to dynamic sectoral allocation in the portfolio, stock selection and timely market calls. In the recent past, the fund house reduced its level of cash holdings from 15-20% to 6-7% by progressively increasing the allocation.
Mr. Mahesh Patil, Co-Head Equity, BSLMF said, “Weak prices have given us the opportunity to buy some new holdings and to add to existing positions at rock bottom prices…We have added to our positions in cyclical stocks which were heavily beaten down and available at historically cheap valuations”.
“We were early movers into Infrastructure & Capital Goods stocks which have now become market favorites…Another significant bet have been on the financial sector, which is benefiting from a crash in short-term interest rates and a steep upward sloping yield curve. We increased our position from underweight to significant overweight in this sector”, Mr. Mahesh Patil said.” Overall, our strategy of not betting blindly on defensives early on and maintaining cash levels helped us to build positions aggressively” he added.
Sectoral diversification is key to stable growth. Birla Sun Life Frontline Equity Fund invests in approximately the same proportion as the sectors in the BSE 200, thus giving each sector its due importance and thereby keeping investor's money invested across promising sectors at any given time. This discipline also reduces over dependence on a particular sector, giving stability to investor's portfolio. The fund manager is not limited in choosing companies across market capitalization. Thus the fund helps investor benefit out of the positive trends and opportunities across sectors and market caps.
Some interesting facts about Birla Sun Life Frontline Equity Fund –
1. Had you invested Rs. 1 Lac in this fund on its inception date (7 yrs ago i.e. 30 Aug 2002) , it would have been worth Rs. 6.2 Lakh on 30 Jun 09
That translates to 30.7% CAGR Returns. The benchmark BSE 200 would have made you Rs. 4.8 Lakh only 2. The fund has declared a total of 240% since inception.
Had you invested Rs. 1 Lakh on inception, you would have got Rs. 2.4 Lakh on Tax-free dividends alone!
3. As a testimony of its consistent performance , 83% of times, the fund has
beaten the benchmark (BSE 200) in 1 year rolling returns
The performance of BSL Frontline Equity Fund has been recognized by external agencies as well. Following are the ratings enjoyed by BSL Frontline Equity Fund - CRISIL CPR 1 as on 31st March, 4 Star Value Research Rating as on 30th June and 5 Star award by ICRA for 1 & 3 Year Performance as on 31st December.
Birla Sun Life Asset Management Company: Established in 1994, Birla Sun Life Asset Management Company (BSLAMC) is a joint venture between Aditya Birla Group, a well known and trusted name globally amongst Indian conglomerates and Sun Life Financial Inc, leading international financial services organization from Canada. BSLAMC is amongst the top 5 asset management companies in India with an average asset under management of Rs 47096 crores as on March 31, 2009 and a market share of 9.5%. An impressive mix of reach through 116 branches, full range of product offerings across equity, debt, balanced & structured asset classes and strong investment performance has helped the Company enjoy trust of over 2.15 Million investors. Known for its consistent performance, BSLAMC, has received recognition from various institutes of international repute like the CRISIL, Asian investor Magazine, ICRA and Lipper. It is the only fund house in India to have won the coveted “Mutual Fund House of the Year” from CNBC TV 18 Crisil twice in a row.
About Aditya Birla Group : A US $29.2 billion corporation, the Aditya Birla Group is in the league of Fortune 500 worldwide. It is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. The group operates in 25 countries across six continents – truly India's first multinational corporation. Aditya Birla Group through Aditya Birla Financial Services Group (ABFSG), has a strong presence across various financial services verticals that include life insurance, fund management, distribution & wealth management, securities based lending, insurance broking, private equity and retail broking. In FY 2008-09, the consolidated revenues of ABFSG from these businesses crossed Rs. 4763 crores, registering a growth rate of 36%.
About Sun Life Financial Inc.: Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide. As of December 31, 2008, the Sun Life Financial group of companies had total assets under management of $381 billion globally.
For More details contact: Nishant Gehlot – 9702700333 – nisantgehlot@birlasunlife.com;
Dividend Date Dividend Cum Dividend NAV (Rs. per unit) (Rs. per unit)
29 Aug 2003 1.00 13.49
31 Mar 2004 2.00 18.48 14 Oct 2004 1.00 16.80 27 Feb 2006 8.00 28.88 28 Aug 2006 6.00 23.56 29 Jun2007 4.00 23.86 08 Aug 2008 2.00 20.48
Dividends mentioned above were on a face value of Rs. 10/unit. After payment of dividend, NAV will fall to the extent of the payout and statutory levy, if any. Inception date: 30 Aug 02. Declaration of dividend is at the discretion of the trustees. Past performance is no guarantee of future results.
Stats:
As on 30 Jun 09, CAGR returns for the periods: Since inception, 5 years, 3 years and 1 year for Birla Sun Life Frontline Equity Fund is 30.71% ,28.92%, 17.90% & 16.64% respectively vis-a-vis benchmark (BSE 200) that has delivered 25.31%, 22.69%, 11.28%, 6.91% for the same periods. Past performance may or may not be sustained in the future.
As on 30 Jun 09, CAGR returns for the periods: Since inception, 5 years, 3 years, & 1 year for BSL Frontline Equity Fund is 30.71%, 28.92%, 17.90% & 16.64% respectively vis-a-vis BSE 200 (benchmark) that has delivered 25.31%, 22.69%, 11.28% & 6.91% for the same period. Past Performance may or may not be sustained in the future.
Ranking Methodology & Disclaimer: Crisil CPR – CRISIL~Composite Performance Ranking - (CRISIL~CPR) is the relative performance ranking of mutual fund schemes within the peer group. The criteria used for computing the ranking are AUM in excess of category cut-off limits & portfolio disclosure and performance in case of Liquid Plans, Floating Rate and Debt-Short Term – Last 1 years; All other Schemes – Last 2 years and 5 yrs CPR track record for consistent CPR Performers. Fund Ratings are as on 31 Mar 09. Ranking is done based on Superior Return Score, Portfolio Concentration Analysis and Liquidity Analysis. CRISIL~CPR 1 - indicates “Very Good" performance and ranks within top 10% of the respective category. Ranking Source: Crisil FundServices, CRISIL Limited. Value Research Ratings :Value Research Fund Ratings are a composite measure of historical risk-adjusted returns. In the case of equity and hybrid funds this rating is based on the weighted average monthly returns for the last 3 and 5-year periods. These ratings do not take into consideration any entry or exit load. Each category must have a minimum of 10 funds for it to be rated. Effective, July 2008, we have put an additional qualifying criteria, whereby a fund with less than Rs 5 crore of average AUM in the past six months will not be eligible for rating.Five-stars indicate that a fund is in the top 10% of its category in terms of historical risk-adjusted returns. Four stars indicate that a fund is in the next 22.5%, The number of schemes in Equity Diversified category is 147. These Fund Ratings are as on June 30, 2009. The Value Research Ratings are published in Monthly Mutual Fund Performance Report and Mutual Fund Insight. The Ratings are subject to change every month. The Rating is based on primary data provided by respective funds, Value Research does not guarantee the accuracy. Ranking source : www.valueresearchonline.com
Statutory Details: Constitution: Birla Sun Life Mutual Fund (BSLMF) has been set up as a Trust under the Indian Trust Act, 1882. Sponsors: Aditya Birla Nuvo Limited and Sun Life (India) AMC Investments Inc.(liability restricted to seed corpus of Rs. 1 Lakh). Trustee: Birla Sun Life Trustee Company Pvt. Ltd. Investment Manager: Birla Sun Life Asset Management Company Ltd. Scheme Name and Objective: Birla Sun Life Frontline Equity Fund is an open-ended growth scheme with the objective of long term growth of capital, through a portfolio with a target allocation of 100% equity by aiming at being as diversified across various industries and or sectors as its chosen benchmark index, BSE 200. Date of inception / takeover: August 30, 2002. Entry Load (Including SIP): For purchase /switch in of units < Rs.5 Crores in value: 2.50%. For purchase / switch in of units >= Rs. 5 Cr. in value: NIL. Direct applications: Nil. Exit Load (Including SIP): For purchase / switch in of units < Rs. 5 Crore in value: 1%, (if redeemed / switched out within 12 months) For purchase / switch in of units >= Rs. 5 Crore: NIL. Risk Factors: Mutual Funds and securities investments are subject to market risks and there can be no assurance or guarantee that the objectives of the Scheme will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme may go up or down depending on the various factors and forces affecting capital markets and money markets. Past performance of the Sponsors / Investment Manager / Mutual Fund does not indicate the future performance of the Scheme and may not necessarily provide a basis of comparison with other investments. The name of the Scheme does not, in any manner, indicate either the quality of the Scheme or its future prospects or returns. Unit holders in the Scheme are not being offered any guaranteed / assured returns. Please refer to the Scheme Information Document for Scheme specific risk factors. Investors should carefully read the Scheme Information Document / Statement of Additional Information / Key Information Memorandum available at Investor Service Centres and with Distributors before investing.
