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Birla Sun Life Frontline Equity
Birla Sun Life Frontline Equity
Birla Sun Life Frontline Equity beat its benchmark 88% of the times on a rolling one-year return basis since its inception in late 2002. While that is a good show, it ramped up performance in the last 3 years, when it did not once underperform its benchmark, even as returns were similarly rolled. Clearly, the fund has, in recent years, been trying to demonstrate better consistency in performance. In terms of its risk profile, the fund is somewhat closer to HDFC Top 200, although the latter may have marginally higher exposure to mid-caps than the former. Both the funds also share a common benchmark. Given that its benchmark BSE 200 is a tough index to beat (considering that Birla Sun Life Frontline Equity invests predominantly in large-cap stocks), especially in a rallying market, the fund has mostly beaten its benchmark in years of up market only by 2-3 percentage points. But it improved on this score in 2012, beating the benchmark by a convincing 5 percentage points. Overall, it adequately made up for this marginal outperformance by containing declines well in market falls such as the ones in 2008 and 2011. It fell 5-7 percentage points lower than the benchmark in those years. Portfolio
Birla Sun Life Frontline Equity contained declines well, but mostly by holding a higher position in cash and debt. For instance, in the market low of March 2009, which was when the turnaround started, the fund held as low as 73% in equities, in contrast to the over 90% held by Franklin India Bluechip. Similarly, in end-2011, when markets received a beating that year, the fund held about 91% in equities, even as bold ones likes HDFC Top 200, went all out with an almost full equity exposure. But thus far, the fund has not paid much of a price for this approach as the returns tend to normalize over a longer term. Birla Sun Life Frontline Equity reduced exposure to consumer-oriented sectors such as automobile and auto ancillaries between December 2012 and June 2013. This may have helped to some extent as these sectors took a beating in the market fall year to date. It is also among the few funds that managed to stay away from negative turf on a year-to-date basis. The fund marginally reduced exposure to banking and finance space in the wake of rate uncertainties and upped exposure to FMCG and pharma. Holdings in IT remained about the same. The fund also appeared to fancy the energy space and held stocks such as Alstom, Power Grid Corporation of India, Cairn India and Oil India. While exposure to infrastructure and capital goods stocks was not high, it held quite a few stocks (with less than 0.5% holding) such as Adani Ports, IL&FS Transportation Networks and Jindal Steel & Power from these spaces.
102 92 61 8 13 12
5 year
# Moneycontrol Rank within 151 Large Cap Schemes.
13.0
1 yr (%)
2 yr (%)
Fund Returns Category avg Difference of Fund returns and Category returns Best of category Worst of category Benchmark returns # Difference of Fund returns and Benchmark returns
Investment Objective 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. Scheme details
Fund Type Investment Plan Launch date Benchmark Asset Size (Rs cr) Minimum Investment Last Dividend Bonus Fund Manager Open-Ended Growth Aug 30, 2002 S&P BSE 200 3,034.98 (Mar-30-2013) Rs.5000 N.A. View Dividend History N.A. Mahesh Patil
View performance of schemes managed by the Fund Manager
Notes
AllIndian schemes of Alliance Capital Mutual Fund have been acquired by Birla Sun Life AMC with effect from the close of business hours on September 23, 2005.
Load Details Entry Load Exit Load Load Comments N.A 1.00% Exit Load of 1% if redeemed within 365 Days from the date of allotment.
Contact Details Regd. Office Tel. No. Fax No. Ahura Centre, Mahakali Caves Road, MIDC, Andheri(E), Mumbai, 400093 91 22 66928000, 91 22 66928001 91 22 66928110
Email Website
connect@birlasunlife.com http://www.birlasunlife.com
129 102 92 61 8 13 12 6
** Annualised returns displayed only for 1 year and above # Total No. of Large Cap : 151