Equity mutual funds are divided into 3 categories, namely, large cap, mid cap and small cap mutual funds. This division is made on the basis of the size of the company’s market cap the fund invests in.
Equity multi cap funds are those mutual funds which invest in stocks of various companies with different market capitalizations to meet the objective of the fund. That is, their portfolio comprises of large cap, mid cap and small cap stocks.
These funds are less risky than pure mid cap or small cap funds. Multi-cap funds take advantage of both, growth and value of style of investment.
Multi cap funds are more suitable for the not-so-aggressive investors.
Aditya Birla Sun Life Equity Fund Review
Aditya Birla Sun Life Equity Fund is one the best equity mutual funds. It has been ranked number 2 in Diversified Equity category by Crisil.
The fund has returned an excess of 20+% since its launch.
In the past 1 year, it has returned more than 30%.
|Fund Category||Equity Multi Cap|
|Risk Level||Below average|
The scheme adopts a bottom up and top down approach of investments along with investing in emerging sectors, IPOs, and other offerings.
The fund has invested 89.20% in equities, 9.43% in cash and the remaining 1.40% in others. The portfolio is focused on large cap stocks and hence has a low level of risk involved.
Fund manager, Anil Shah, picks up stocks from across market capitalisation which show reasonable visibility of growth and trade at reasonable valuations.
Should You Invest in Aditya Birla Sun Life Equity Fund?
Aditya Birla Sun Life Equity Fund has been in existence for the past 18 years. It has consistently outperformed its benchmark, S&P BSE 200, and its peers by a wide margin.
The scheme has an exit load of 1% for redemption within 365 days. It lies in the below average risk grade.
It has the right mix of mid and large sized companies.
The positive track record and consistent earnings growth are major advantages of this fund. In the 3 year and 5 year periods, the scheme has given returns of 24% and 21.9% respectively, while its peers generated returns of 19% and 17% respectively.
Investors should invest in this fund as it has the potential of wealth generation with equity.
How to Invest in Aditya Birla Sun Life Equity Fund?
Aditya Birla Sun Life Equity Fund is available for investment on the Groww platform. Simply log in to your account, choose the fund- Aditya Birla Sun Life Equity Fund – make payment and start your SIP!
Happy Investing! yea