One of India’s leading asset management companies, ABSL offers its clients a wide range of investment solutions and has had a strong presence in retail and institutional segments for over 28 years.
ABSL AMC is a wholly owned subsidiary of Aditya Birla Capital Limited which is backed by Aditya Birla Group, a large conglomerate with a diverse portfolio of businesses.
The Aditya Birla Group is one of India’s leading business houses, with a strong presence across various sectors in India and around the world. ABSL AMC benefits from the financial strength and stability of Aditya Birla Capital Limited and the Aditya Birla Group.
ABSL Frontline Equity Fund
Investment objective:
The primary investment objective is to seek to generate long-term capital appreciation from a portfolio with a target allocation of 100% equity by aiming at being as diversified across various industries and/or sectors.
Investment process:
- ABSL Frontline Equity Fund aims to achieve sectoral diversification as its benchmark index.
- The scheme will track the same sectoral weights within its equity portfolio as the benchmark index but with the flexibility of selecting stocks from a more expansive investment universe within a particular sector.
Portfolio composition:
The portfolio holds roughly 98% equity, of which the significant sectoral exposure is to Financials, which account for roughly 38%. The top five sectors hold more than 50% of the portfolio.
Source: ABSL MF
Top 5 Sector Holdings for ABSL Frontline Equity Fund
| Name | Weightage % |
| ICICI Bank | 9.07 |
| HDFC Bank | 7.47 |
| Infosys | 7.12 |
| Reliance Industries | 5.49 |
| L&T | 4.70 |
Source: ABSL MF
Performance
Given below is the Return over time:
| CAGR of this fund | CAGR of S&P BSE 100 TRI | |
| 1 Year | 1.74 | 1.48 |
| 3 Years | 24.57 | 25.65 |
| 5 Years | 10.42 | 11.82 |
| 7 Years | 12.59 | 13.78 |
| 10 Years | 14.63 | 13.70 |
Source: Valueresearch.com
Since its inception, the fund has generated a CAGR (Compounded Annual Growth Rate) of 18.68%.
Fund Manager
- Mahesh Patil is Aditya Birla Sun Life AMC Limited’s Chief Investment Officer (CIO), overseeing over INR 3 lakh crore of assets under management. He has over thirty years of experience in fund and investment management and leads the entire investment team. He is personally managing this fund. He holds a Bachelor’s Degree in Engineering and a Master’s in Management Studies from the University of Bombay and has qualified for the Chartered Financial Analysts examination.
- Dhaval Joshi has an overall experience of 15 years in equity research and investments. Before joining Aditya Birla Sun Life AMC Limited, he was associated with Sundaram Mutual Fund (India) Ltd. for around five years. He has also worked as a research analyst with Emkay Global Financial Services and Asit C Mehta Investment Intermediates Ltd.
Who should invest in this Fund?
Investors looking to generate wealth over the long term without taking the risk aggressively can consider this fund.
This fund can provide Investment avenues that can help you capitalize on the growth potential of equity yet provide you with the possibility of stable returns that can help you gain confidence about the market.
Why Invest in this Fund?
- This high-risk, high-return strategy can earn significant returns.
- It can help you beat the impact of rising prices over the long term.
Time Horizon
- One should look at investing for at least three years or even more.
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
The ABSL Frontline Equity Fund has a proven track record of over a decade, delivering a CAGR (Compounded Annual Growth Rate) of 14.63%.
Thus, it is a suitable investment option for investors with a long-term investment horizon, a moderate to high-risk appetite, and looking to potentially invest in large-cap stocks to generate capital appreciation.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
