Aditya Birla Sun Life AMC (ABSL AMC) today is one of the largest fund houses in India. Its presence in the financial industry landscape can be known from the fact that it has more than 16,000 employees working under it.

Vision of the AMC

  • Being the leader in the industry and not just a competitor;
  • To become a role model by being the best in whatever they do;
  • To be a player that caters to all the needs of the customers;
  • To be an integrated player to garner a competitive edge in the market;

Now that we have discussed about the company in short, let us delve deeper into the details about the fund house.

Key Information

Fund HouseAditya Birla AMC
Commencement of OperationsDecember 23, 1994
Assets Under Management2.5 lakh crores
SponsorAditya Birla Capital / Sun Life (India) AMC Investments Inc.
TrusteeAditya Birla Sun Life Trustee Private Limited
ChairmanMr. Kumar Mangalam Birla
CEO & MDMr. A. Balasubramanian
Co- CIOMr. Mahesh Patil & Mr. Maneesh Dangi
Compliance OfficerMs. Hemanti Wadhwa

Performance

The performance of the fund house over the last few years has been phenomenal with rising flows in all categories i.e equity, debt, liquid and ETFs. Today, the fund house is ranked 3rd among mutual funds in India.

The AUM saw a robust growth of 27 percent to 2.67 lakh crores in FY 18. Not just this, its performance can also be highlighted from the following:

Market share in equity average assets under management was up to 9.18% in FY 18 from 8.53% in FY17. B15 AUM crossed INR 40,000 crore mark in FY 18;

Financial Performance

ParticularsFY 2018FY 2017
Average AUM267739210742
Earnings before tax493337
Earnings after tax330223
SIP book size (Market Share)12.16%11.01%

Looking at the key financial aspects, we see that the company has grown steadily last year and is also poised to grow given the large traction that can be seen in the asset management industry.

Key People

A. Balasubramanian

Mr. Balasubramanian is the CEO of the AMC and has been with the organization since 1994.

Currently, the AUM for the AMC is roughly USD $34 Billion. He has over 26 years of work experience across the mutual fund industry, both in fixed income and equities.

Mr. Balasubramanian is also a member of NISM (SEBI), and was also the Chairman of AMFI previously. He is an alumnus of IIM Bangalore and Harvard University.

2. Mahesh Patil

Mr. Patil is the Co-CIO at ABSL AMC and manages equity assets of over INR 87000 crores. He joined the company in 2005 and has more than 27 years of experience in fund and investment management. He currently manages the following funds:-

Mr. Patil is an engineer and also completed MBA from JBIMS, Mumbai.

3.Maneesh Dangi

Mr. Dangi is also the Co-CIO at ABSL AMC and spearheads the fixed income investments. He has over eighteen years of experience in finance and research and manages around 1.5 lakh crores of investments.

Some of the funds that he manages are as follows:-

Mr. Dangi has completed MBA in Finance and is also an FRM.

Top Fund Managaers

1. Kaustubh Gupta

Mr. Gupta is a Senior Fund Manager with the AMC. He has over 14 years of experience, working in various capacities such as liquidity management, treasury and fund management.

Prior to joining the company, Mr. Gupta worked with ICICI Bank in the ALM (Asset Liability Management) Team. He is a CA and CFA (Level 2) by qualification.

Funds Managed:

2. Mohit Sharma

Mr. Sharma is a fund manager at the AMC and has an experience of over 13 years in the industry.

He has been with the firm for the last 3 years and previously worked at Standard Chartered Bank, ICICI Bank and CRISIL.

He is an alumnus of IIT Madras and IIM Calcutta. Some of the funds managed by Mr. Sharma are as follows

3. Ashish Kela

Mr. Ashish Kela has over 12 years of experience and specializes in fixed income and structured finance. Mr. Ashish is not just focused on portfolio management but also functions as a macroeconomic analyst and market strategist for the Investments Team.

Prior to joining the firm, Mr. Kela worked in the area of structure credit products with Nomura Structured Finance from the London and India office.

Mr. Kela is an alumnus of IIT Bombay and also holds the CFA charter.

Funds Managed

4. Sunaina D’Cunha

Ms. D’Cunha has over seven years of experience in the industry and has also worked with Aditya Birla Management Corporation Ltd. She is an MBA in Finance from FMS Delhi and also holds the CFA charter. Some of the funds managed by Ms. Cunha are as follows:-

Let us now look at each fund in detail.

1.Aditya Birla Sun Life Equity Fund

Key Information

AUM (Assets Under Management)INR 10,035 crores
NAV INR 737.2
Minimum SIP Amount100
Expense Ratio1.07%
Fund TypeEquity – Multi Cap
RiskModerately High
BenchmarkS&P BSE 200 TRI
Fund ManagerAnil Shah
Exit LoadExit load is 1% if redeemed within 365 days
Fund Started01 – Jan – 2013

Investment Objective

The investment objective of the fund is to provide long term capital appreciation by investing in a portfolio comprising mainly of equity stocks (roughly 90 percent).

Sector Allocation

 

 

Aditya Birla Sun Life Equity Fund

SectorsAllocation (%)
Financials35.6%
FMCG10.7%
Technology9.5%
Metals9.2%

Why Invest in This Fund?

The fund has consistently beaten the benchmark index, along with other funds in the same category and therefore has been on the investor’s radar.

The expense ratio of the fund is also reasonable at 1.07 percent and given the minimum SIP amount required is INR 100, this solves the problem for systematic investing as well.

Not just this, the kind of companies included in the portfolio also highlights the growth potential.

Top Holdings

Company NameSector% Allocation
HDFC Bank Ltd.Financial Services9.1%
ICICI Bank Ltd.Financial Services8.4%
Dr. Reddy’s Laboratories Ltd.Healthcare4.5%
ITC Ltd.FMCG4.5%
Tech Mahindra Ltd.IT4.0%
Infosys Ltd.IT3.3%
Tata Steel Ltd.Metals3.1%
Hindalco Industries Ltd.Metals2.8%
PVR  Ltd.Services2.6%
Tata Chemicals Ltd.Chemicals2.5%

2. Aditya Birla Sun Life Tax Relief 96 Fund

Key Information

AUM INR 7,373 crores
NAV INR 32.3
Minimum SIP Amount500
Expense Ratio1.06%
Fund TypeELSS
RiskModerately High
BenchmarkS&P BSE 200 TRI
Fund ManagerAjay Garg
Exit LoadNil
Fund Started01 – Jan – 2013

Investment Objective

The investment objective of the fund is to generate long term capital appreciation through a portfolio allocation comprising 80 percent equity and 20 percent debt and money market securities.

Sector Allocation

 

 

Aditya Birla Sun Life Tax Relief ’96 Fund

SectorsAllocation (%)
Healthcare19.8%
Financials19.3%
Services11.6%
FMCG10.7%

Why Invest in This Fund?

This ELSS fund has beaten its benchmark and other funds in the same category consistently over the years.

Also, with an SIP amount of INR 500 and 3 years lock in period develops in us a knack of long term investing. The expense ratio of the fund too is at 1.06 percent which can be considered reasonable.

One would also be happy to reflect on the portfolio of the scheme which includes great names such as RIL, Gillette, Pfizer, HDFC Ltd. etc.

Top Hodings

Company NameSector% Allocation
Honeywell Automation India Ltd.Engineering7.5%
Reliance Industries Ltd.Energy7.2%
Gillette India Ltd.FMCG6.8%
Bayer CropScience Ltd.Healthcare6.0%
Pfizer Ltd.Healthcare5.4%
GlaxoSmithKline Pharmaceuticals Ltd.Healthcare5.2%
Thomas Cook (India) Ltd.Services4.8%
HDFC Ltd.Financial Services4.6%
Sundaram-Clayton Ltd.Automobiles4.4%
Shopper’s Stop Ltd.Services3.5%

3.Aditya Birla Sun Life India GenNext Fund 

Key Information

AUM INR 898 crores
NAV INR 84.2
Minimum SIP Amount1000
Expense Ratio1.48%
Fund TypeEquity – Sectoral / Thematic
RiskHigh
BenchmarkS&P BSE 500 TRI
Fund ManagerAnil Shah, Chanchal Khandelwal
Exit LoadExit load is 1% if redeemed within 1 year. The same is the case with SIPs
Fund Started01 – Jan – 2013

Investment Objective

The investment objective of the fund is to target capital appreciation by investing in equity and equity related instruments of companies that are expected to benefit from rising consumption pattern in India.

This, in turn, gets fuelled by the high disposable income from the young generation hence the name GenNext.

Sector Allocation

 

 

Aditya Birla Sun Life India GenNext Fund

SectorsAllocation (%)
Financials33.5%
FMCG27.1%
Healthcare9.2%
Consumer Durables7.2%

Why Invest in This Fund

The returns, as well as the risk of the fund as compared to its benchmark, S&P BSE 500 TRI, have been better. Also, the fund managers are key believers of India’s growth story as is reflected in the allocation of the portfolio into various key sectors such as financial services, FMCG etc.

Not just this, the AUM size of the fund is also less, thereby reflecting on the strong potential for growth going forward.

Top Holdings

Company NameSector% Allocation
HDFC Bank Ltd.Financial Services7.0%
ICICI Bank Ltd.Financial Services5.6%
ITC Ltd.FMCG4.8%
PVR Ltd.Services2.8%
Kotak Mahindra Bank Ltd.Financial Services2.5%
Maruti Suzuki India Ltd.Automobiles2.5%
Nestle India Ltd.FMCG2.5%
HDFC Ltd.Financial Services2.4%
Britannia Industries Ltd.FMCG2.4%
Colgate Palmolive (India) Ltd.FMCG2.2%

4.Aditya Birla Sun Life Credit Risk Fund

Key Information

AUM INR 7,880 crores
NAV INR 14.1
Minimum SIP Amount100
Expense Ratio0.68%
Fund TypeDebt – Credit Risk
RiskModerate
BenchmarkCCIL T Bill Liquidity Weight
Fund ManagerManeesh Dangi, Sunaina da Cunha
Exit LoadExit Load is 1% for units redeemed in excess of 15% of the investment within 365 days
Fund Started17 – April – 2015

Investment Objective

The investment objective of the fund is to generate returns by investing predominantly in a portfolio of corporate debt securities with maturities ranging from short to medium term. These securities are across various credit spectrums and within the investment grade.

Sector Allocation

 

 

Aditya Birla Sun Life Credit Risk Fund

SectorsAllocation (%)
Financials42.5%
Construction21.8%
Services14.4%
Engineering10.5%

Why Invest in This Fund

The fund is suitable for long term investment as the debentures and CPs invested in are in top rated names such as HDFC Ltd., Reliance Retail, SBI, L&T Vadodara Bharuch Toll way Ltd. etc;

The minimum SIP amount is INR 100 which reflects that it is accessible to all retail investors and the expense ratio of the scheme is also reasonable at 0.68%;

Given these features, we can put our money if we need moderate risk and stable returns from the markets.

Top Holdings

Company NameSectorInstrument% Allocation
Sprit Infrapower and Multiventures Pvt. Ltd.TextilesDebenture5.6%
HDFC Ltd.Financial ServicesCP4.3%
Reliance Retail Ltd.ServicesSecuritized Debt3.9%
Spandana Sphoorty Financial Ltd.Financial ServicesDebenture3.7%
Adilink Infra & Multitrading Pvt. Ltd.ServicesDebenture3.6%
SP Imperial Star Pvt. Ltd.ServicesDebenture2.9%
State Bank of IndiaFinancial ServicesDebenture2.5%
Embassy Property Developments Pvt. Ltd.ConstructionDebenture2.5%
L&T Vadodara Bharuch Tollway Ltd.ConstructionDebenture2.1%
Adani Infra (India) Ltd.ConstructionDebenture2.0%

Conclusion

The strong performance of the fund in every category, the management expertise and quality products have helped Aditya Birla Sun Life AMC to clock massive growth in the asset management industry.

The industry is also expected to gain from various initiatives by AMFI and SEBI to boost and channelize people’s savings into this industry.

Given all these factors, we should definitely have a look at various products being offered by this fund house in order to achieve our long term goals.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww