Best Aditya Birla Equity Mutual Funds

Aditya Birla Sun Life AMC started its journey in 1994. It was a joint venture between Aditya Birla Capital and Sun Life AMC Investments Inc. The company registered a total asset under management of Rs.269278.03 crore as of March 2021. Moreover, Aditya Birla Sun Life AMC is the primary investment manager for Aditya Birla Sun Life Mutual Fund, which is a registered trust. 

Currently, 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 invests 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 one’s money. 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.

Additionally, best Aditya Birla Sunlife equity mutual funds have 2 more classifications, diversified and sectoral or thematic. Diversified funds invest in different companies across various sectors. Whereas for thematic or sectoral funds, it is quite the contrary. Here, the focus of investment is on a particular sector or theme like pharma, energy, metal, finance sector, etc.

One of the primary advantages of investing in equity mutual funds is they offer high returns. They can generate sizeable returns shall the underlying stocks perform well. However, the return generated from directly investing in stocks is typically greater than that of investing in equity-based mutual funds. 

Equity mutual funds are more susceptible to market fluctuations than the other MF types. But they involve less concentrated risk than direct investments in stocks because of a diversified portfolio. 

Equity MFs are popular for their diversification, where one can invest in a variety of stocks. Also, flexibility and liquidity are two major points of advantage for this fund type.

Nonetheless, the exact scale of these benefits or setbacks is hard to guess. They vary based on specific schemes and, most importantly, market conditions.