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Large-cap Mutual Fund Given Upto 85% Return, Annualized Return Outperformed Category Average:Morningstar Rated
At present, the Indian equity markets are much bearish now. Sensex and Nifty both are marginally down, due to interest rate hikes by major economies and huge FPI outflow from Indian markets. This has impacted similarly the returns from SIPs and mutual funds. So, it will be wise to invest in mutual funds after thoroughly checking the portfolio of the mutual funds. Here, a large-cap mutual fund has been discussed with its portfolio for investors.
Large-cap investment rationale
Large-cap mutual funds are commonly identified as funds that invest mostly in the top 100 company stocks listed in the equity markets, along with a lesser number of investments in the other stocks. The stock markets are very volatile. With the ups and downs of the stock markets, the returns from the mutual funds will also be influenced. So, many investors think that investing the safer stocks can help them to secure returns. The top 100 stocks/large-cap stocks, also known as the bluechip stocks are much safe and secure investment tools. These stocks have been listed in the stock markets for a long time and have given good returns in long term. However, these companies are mostly developed companies, so these funds can offer you lesser returns than the small-cap funds. But the small-cap funds will come with higher risks. So, the investment in the large-cap or small-cap funds will depend on the investor's risk appetite.
For the mutual funds, the NAV and AUM should be checked in detail.
Returns from Aditya Birla Sun Life Frontline Equity Fund - Regular Plan
As it is a large-cap fund, its absolute returns from SIPs have been reported considerably well in the long term. In the last 1-year SIP return stood at -7.17%, in the last 2 years it has fetched 12% returns, in the last 3 years it has given 21.83% returns, in the last 5 years, it has fetched 30% returns. Annualized returns from Aditya Birla Sun Life Frontline Equity Fund's SIP were 11.33% in the past 2 years, and 13.26% in the past 3 years.
Aditya Birla Sun Life Frontline Equity Fund's absolute mutual fund returns are highest in 5 years terms and above. In the last 1 year return stood at 7.35%, in the last 2 years it has fetched 68.97% returns, in the last 3 years it has given 42.37% returns, in the last 5 years it has given 53.45% returns, and in the last 10 years, it has given 85.78% returns. In the past 2 years, the Aditya Birla Sun Life Frontline Equity Fund's annualized returns stood at 29.99%, marginally outperforming the category average at 27.01%.
(Data till May 13, 2022)
NAV and AUM
Aditya Birla Sun Life Frontline Equity Fund is a mutual fund SIP investment that has a NAV of Rs. 305.11, and the size - Of assets Under Management (AUM) of this fund is Rs. 21160.52 crore. The Expense Ratio (ER) of this fund is 1.73%, while the category average is 2.18%. In this case, the ER is lower than the category average, which will be helpful for the investors to gain better profits.
AUM and NAV are two major tools an investor checks before investing in any fund. AUM is known as the total market value of the assets which a mutual fund will be managing at a point in time. Additionally, the Expense Ratio is the percentage, which the mutual fund house will be using from the retail investors' investments, for its fund management.
This mutual fund SIP has been best rated with 3 Star by rating agency Morningstar.
Portfolio
Aditya Birla Sun Life Frontline Equity Fund's total equity holding is 96.96%, and the rest of the 3.04% is invested in other sectors. Among a total of 72 stocks, the Fund's Large Cap Investments are 76.25%, Mid Cap Investments are 8.66%; Small-Cap Investments are 1.09%, and 10.92% investments are allocated to other funds.
The top 10 equity holdings of the fund are ICICI Bank Ltd., Infosys Ltd., HDFC Bank Ltd., Reliance Industries Ltd., Bharti Airtel Ltd., Larsen & Toubro Ltd., Axis Bank Ltd., State Bank Of India, HCL Technologies Limited, and Housing Development Finance Corporation Ltd.
Other funds under this category are, Union Large-cap Fund - Growth, IDBI India Top 100 Equity Fund - Growth, ICICI Prudential Bluechip Fund-Growth, etc.
(Also read: Stock To Buy: Agrochemicals Stock That Can Gain 30% On Higher Prices & Expansion)
Disclaimer
Investing in equities/mutual funds/SIPs/debts poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article.
