Introduction– Aditya Birla Sun Life Equity Advantage Fund
Investing in mutual funds is a strategic way to grow your wealth, and the Aditya Birla Sun Life Equity Advantage Fund Growth stands out as a notable choice for investors aiming for long-term capital appreciation. With a focus on large and mid-cap companies, this fund balances moderate risk with growth potential.
In this article, we’ll explore the fund’s performance, portfolio structure, sectoral allocation, and risk metrics. Additionally, we’ll compare it with industry averages and competitors, helping investors make informed decisions.
Investment Objective – Aditya Birla Sun Life Equity Advantage Fund
The Aditya Birla Sun Life Equity Advantage Fund aims to achieve long-term growth of capital by investing in a diversified portfolio of equities from large and mid-cap companies. This approach seeks to combine the stability of large-cap stocks with the high-growth potential of mid-cap firms, catering to moderate risk-takers.
Fund Highlights – Aditya Birla Sun Life Equity Advantage Fund
Below are the key highlights of the fund:
| Parameter | Aditya Birla Sun Life Equity Advantage Fund |
|---|---|
| Category | Large & Mid-Cap |
| Benchmark | Nifty LargeMidcap 250 TRI |
| Inception Date | 24 February 1995 |
| Fund Manager | Dhaval Joshi (Since November 2022) |
| Expense Ratio | 1.90% |
| Assets Under Management (AUM) | INR 58,695.20 million (as of Nov 30, 2024) |
| Minimum Investment | INR 1,000 |
This fund is suitable for investors seeking a long-term investment horizon with exposure to India’s large and mid-cap equity markets.
Performance Analysis – Aditya Birla Sun Life Equity Advantage Fund
The fund’s historical performance showcases its resilience and ability to deliver returns across different market cycles. However, it has faced some underperformance compared to peers in recent years. Below is a detailed look at its trailing returns compared to the industry average:
| Time Period | Fund Return | Industry Average | Top Competitor |
|---|---|---|---|
| 1 Year | 18.76% | 19.50% | 20.10% |
| 3 Years | 10.73% | 12.80% | 14.50% |
| 5 Years | 15.69% | 16.50% | 18.20% |
The fund has shown consistent long-term performance, but short-term returns have been slightly below the industry average, primarily due to higher volatility in its portfolio.
Risk Metrics – Aditya Birla Sun Life Equity Advantage Fund
Risk metrics help investors assess the volatility and stability of a fund. For Aditya Birla Sun Life Equity Advantage Fund Growth, here are the key indicators:
| Metric | Value | Industry Average |
|---|---|---|
| Beta (3-Year) | 1.01 | 1.00 |
| Alpha (3-Year) | -5.60 | -3.50 |
| Sharpe Ratio (3-Year) | 0.30 | 0.40 |
| Standard Deviation (3-Year) | 14.66 | 13.50 |
- A Beta of 1.01 indicates the fund’s sensitivity to market movements, slightly higher than the average.
- The Alpha of -5.60 reflects underperformance against the benchmark.
- The Sharpe Ratio of 0.30 suggests moderate risk-adjusted returns compared to its peers.
Portfolio Composition – Aditya Birla Sun Life Equity Advantage Fund
The fund invests predominantly in equities, allocating 98.53% of its portfolio to stocks. Here’s the breakdown:
| Asset Class | Allocation |
|---|---|
| Equity | 98.53% |
| Cash | 1.47% |
| Bonds | 0.00% |
Top 5 Holdings – Aditya Birla Sun Life Equity Advantage Fund
The fund’s top 5 holdings account for a significant portion of its portfolio:
| Company | Sector | % of Portfolio |
|---|---|---|
| ICICI Bank Ltd. | Financial Services | 4.31% |
| Infosys Ltd. | Technology | 4.16% |
| HDFC Bank Ltd. | Financial Services | 3.53% |
| Reliance Industries Ltd. | Energy | 2.64% |
| Fortis Healthcare Ltd. | Healthcare | 2.51% |
Sectoral Allocation – Aditya Birla Sun Life Equity Advantage Fund
The fund maintains a balanced sectoral allocation, focusing on cyclical and growth-oriented industries:
| Sector | Allocation |
|---|---|
| Financial Services | 23.52% |
| Consumer Cyclical | 22.98% |
| Industrials | 18.19% |
| Technology | 6.29% |
| Healthcare | 5.78% |
This sectoral diversification allows the fund to adapt to different economic conditions while leveraging growth opportunities.
Comparative Analysis – Aditya Birla Sun Life Equity Advantage Fund
Here’s how the fund stacks up against a leading competitor and the industry average:
| Metric | Aditya Birla Sun Life Fund | Top Competitor | Industry Average |
|---|---|---|---|
| Expense Ratio | 1.90% | 1.60% | 1.80% |
| 3-Year Return | 10.73% | 14.50% | 12.80% |
| 5-Year Return | 15.69% | 18.20% | 16.50% |
| Risk Profile | Above Average | Below Average | Average |
While the fund offers competitive returns, its expense ratio and risk levels are slightly higher compared to leading competitors.
FAQs – Aditya Birla Sun Life Equity Advantage Fund
1. Who should invest in this fund?
This fund is suitable for:
- Investors with a long-term investment horizon (5+ years).
- Moderate risk-takers comfortable with market fluctuations.
- Individuals seeking exposure to large and mid-cap equity markets in India.
2. What is the minimum investment required?
The minimum initial and additional investment required is INR 1,000, making it accessible for retail investors.
3. Are there any exit loads?
Yes, the fund imposes the following exit load:
- 1% for redemption within 90 days.
- No exit load for redemptions after 90 days.
4. What is the role of the fund manager?
The fund manager, Dhaval Joshi, plays a critical role in selecting and managing the portfolio to align with the fund’s objectives.
5. How does the fund manage risk?
The fund diversifies its portfolio across sectors and companies to minimize risk. However, its above-average risk profile indicates higher volatility compared to some peers.
Conclusion
The Aditya Birla Sun Life Equity Advantage Fund Growth is a well-diversified mutual fund ideal for long-term investors seeking capital appreciation. While it delivers consistent returns over five years, it has underperformed slightly in the short term compared to industry averages. Its focus on large and mid-cap equities ensures a blend of stability and growth potential.
Investors must consider their risk tolerance and financial goals before investing. Consulting a financial advisor is recommended to make an informed decision.
If you want to invest under my guidance in mutual funds,
please click here to connect with me.
For other mutual fund analysis, please explore the
mutual fund category.