Birla Sun Life Top 100 Fund has been ranked as the number one fund by CRISIL amongst several large cap equity funds for mutual funds schemes. The Fund has been managed exceedingly well making it a great draw among investors.
The Fund has given super returns in the one year of around 44 per cent. There is no doubt that the Sensex and Nifty has rallied and in comparison to that the fund has maintained its performance. The Nifty has given a year to date return of around 25 per cent, while the Fund has generated a return of almost 38 per cent, clearly outperforming returns from the Sensex and the Nifty this year. If we take a more longer term view, then the fund has given returns of around 15 per cent in the last 5 years. This is pretty decent in comparison to bank fixed deposits or any other dent instruments.
Portfolio of Birla Sun Life Top 100
The portfolio comprises top stocks from the Sensex and the Nifty including the likes of ICICI Bank, HDFC Bank, HCL Technologies etc. It's an interesting mix between tech stocks and old economy stocks. One cannot see any mid cap stocks in the top holdings of the company.
Should you invest?
The net asset value of the scheme is high now, because the markets have rallied substantially. So, if you invest you might get the fund at a high price. What we would suggest is wait for sometime, till the markets fall wherein you could get the fund at reasonable valuations. The systematic investment plan of the fund is not a bad proposition, since you can invest a small sum of Rs 1000 every month. The fund recently declared a dividend of Rs 0.8500.
The key risk for the fund remains a sharp fall in the stock markets for whatever reason. Any fall in the indices could see a sharp fall in the NAV of the scheme.