HOME > MUTUAL FUND > CITRUS ANALYSIS
  CITRUS ANALYSIS
MUTUAL FUNDS NEWS
Birla SL Equity: Superior performance among multi caps
Wed, Feb 08, 2017
Source : Yash Jashnani, Citrus Interactive

Birla Sun Life Equity Fund is an open ended multi cap equity diversified fund.  The primary objective of the scheme is of long term growth of capital without any bias to a particular sector or market capitalization. The fund has an AUM of Rs 3,294 crore as on 31st December 2016 which has increased by Rs 814 crore compared to last year 31st December 2015.

 

Performance

The fund’s performance across various time horizons is very good as seen in the table given below. It has beaten its benchmark in all the time periods. It has done better than the equity diversified category in all the time periods.

Scheme Name

YTD

6 Months

1 Year

3 Years

5 Years

Since Inception

Birla Sun Life Equity Fund

6.92

8.09

30.59

27.14

20.8

24.7

 S&P BSE 200

5.41

0.24

15.98

15.11

12.01

14.38

Category Average

5.84

1.64

18.13

22.43

17.53

NA

Rank

34/147

6/147

4/147

37/133

34/128

NA

Figures are in % as on 31st January 2017; Returns above 1 year in Compounded Annual Growth Rate (CAGR)

In terms of the calendar year returns the fund has beaten the benchmark and equity diversified category average in all time periods.

Scheme Name

2012

2013

2014

2015

2016

Birla Sun Life Equity Fund

35.74

7.11

56.61

2.93

15.21

 S&P BSE 200

30.98

4.38

35.47

-1.48

3.95

Category Average

32.7

5.71

49.83

2.48

4.82

Rank

52/128

51/131

49/133

77/140

2/147

All figures in %

Risk: In terms of measures of risk such as Standard Deviation and Beta (measured over the last 3 years), the fund has taken higher risk compared to its category median.

 

Standard Deviation

Beta

Birla Sun Life Equity Fund

0.96

0.95

Category Median

0.92

0.92

Risk-Adjusted Return: In terms of Treynor and Sharpe Ratio (measured over the last 3 years) the fund has provided higher risk adjusted returns compared to the category median.

 

Treynor

Sharpe

Birla Sun Life Equity Fund

0.08

0.08

Category Median

0.05

0.06


Portfolio

Sector concentration: The fund’s concentration in the top 5 and 10 Sectors is higher than the category median and the fund’s concentration in the top 3 sectors is lower compared to the category median.

 

Top 3

Top 5

Top 10

Birla Sun Life Equity Fund

34.32

44.99

60.73

Category Median

33.63

45.57

64.95

Figures are in % as on 31st December 2016

 

Company concentration: The fund’s Concentration in the top 3, 5 and 10 Companies is lower than the category median.

 

Top 3

Top 5

Top 10

Birla Sun Life Equity Fund

12.97

19.67

35.58

Category Median

16.41

24.24

39.52

Figures are in % as on 31st December 2016

 

Number of Equity Holdings: The Fund currently holds 69 stocks in its portfolio (31st December 2016), which is higher than the median stock count of the equity diversified category, which currently stands at 46. In the last 5 years the equity holding averages to 64.

 

Cash Equivalent:

Its cash equivalent for December 2016 was 10.05 per cent. The average cash allocation for the last five years is 5.34 per cent. Its maximum allocation to cash over the last two years is 10.43 percent in July 2014 and lowest was 1.40 percent in Jan 2016. In 2016 it had an average cash allocation of 5.64 per cent.

 

Portfolio Characteristics:

The Top 5 sectors include Bank-Private, Pharmaceuticals & Drugs, Finance-NBFC, IT-Software, and Oil Exploration.

In the last 6 months the fund has bought ACC Ltd., Ashok Leyland Ltd., Atul Ltd., Aurobindo Pharma Ltd., Bharat Financial Inclusion Ltd., Bharti Infratel Ltd., CESC Ltd., Dish TV India Ltd., Hindustan Unilever Ltd., ICICI Bank Ltd., IDFC Ltd., L&T Finance Holdings Ltd., PNB Housing Finance Ltd, Repco Home Finance Ltd., Shriram Transport Finance Company Ltd., Tech Mahindra Ltd. & Vedanta Ltd. 

Stocks of Bajaj Auto Ltd., Bharat Forge Ltd., Cipla Ltd., Karur Vysya Bank Ltd., Lupin Ltd., Motherson Sumi Systems Ltd., Reliance Industries Ltd., United Breweries Ltd. & VRL Logistics Ltd. were dropped from its portfolio.

Stocks of Axis Bank Ltd., DLF Ltd., GAIL (India) Ltd., Rallis India Ltd. & Wipro Ltd. have been bought and sold.

 

Process

The scheme would invest 80-100% of its assets in Equity and Equity Related Instruments and it would invest 0-20% in Debt & Money Market Instruments (including Securitized Debt) and other liquid investments or both.

The Scheme would adopt top-down and bottom-up approach of investing and will aim at being diversified across various industries, sectors and market capitalization. The investment emphasis of the scheme would be on identifying companies with sound corporate managements and prospects of good future growth. Essentially, the focus would be on stocks driven by long-term fundamentals.

However, short term opportunities would also be seized, provided underlying values supports these opportunities. A portion of the scheme will also be invested in IPOs, emerging sectors, concept stocks and other primary market offerings that meet our investment criteria.

 

Fund Manager

Anil Shah

Mr. Anil Shah is the Senior Fund Manager at Birla Sun Life Senior Fund Manager Asset Management Co. Ltd., and previously was a Fund Manager. Mr. Shah is a part of the equity team at the firm.

Prior to joining the firm, he worked at RBS Equities (India) Ltd. for close to 15 years.

The schemes managed by Mr. Anil Shah are Birla Sun Life Special Situations Fund, Birla Sun life GenNext Fund, Birla Sun Life Focused Equity Fund Series 1 to Series 5 and Birla Sun Life Manufacturing Equity Fund.

Mr. Shah has a vast experience in equity research and investments. Mr. Shah holds a Degree in B.Com. He also holds the C.A. and Cost Accountant designations

          

Our View

Birla Sun Life Equity Fund has shown extremely good consistency in terms of beating its benchmark as well as peer group mutual funds. The fund maintains a diversified portfolio at the stock level. It can be considered for multi cap allocation in your portfolio.

 

 
|
|
|
|
|
 
blog comments powered by Disqus
  RELATED NEWS >>