One of India’s leading asset management companies, ABSL offers 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 Aditya Birla Group, a large conglomerate with a diverse portfolio of businesses, backs.
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 Multi Cap Fund
Investment Objective
The scheme aims to achieve long-term capital growth at commensurate levels of risk through diversified research-based investment in Large, Mid & Small cap companies.
Investment Process
- The scheme would adopt top-down and bottom-up investing approaches and aim to diversify across various industries and/or sectors and/or market capitalization.
- The investment emphasis of the scheme would be on identifying companies with sound corporate management and prospects of good future growth.
- The focus would be on stocks driven by long-term fundamentals. However, short-term opportunities would also be seized, provided underlying values support these opportunities.
Portfolio Composition
The fund had 98.62% of its assets invested in equities, and the remaining 1.38% of the assets were held in cash and cash equivalents as of 31st May 2023.
Approximately 44% of the investments were in large caps, whereas 41% of the funds were allocated to mid-caps, and the remaining 15% were invested in small-cap companies as of 31st May 2023.
The significant sectoral exposure is to Financials, which account for more than 30%. The top five sectors hold roughly 78% of the portfolio.
Source: ABSL MF, Value Research
Top 5 sector holdings for ABSL Multi Cap Fund
| Name | Weightage % |
| ICICI Bank | 5.69 |
| HDFC Bank | 4.64 |
| Infosys | 2.83 |
| Poonawala Fincorp | 2.72 |
| SBI | 2.41 |
Source: ABSL MF
Performance
Given below is the Return over time:
Source: ABSL MF investment-opportunities
The fund has generated a CAGR of 13.67% as on 31st May 2023 for its regular plan since its inception on 07th May 2021.
However, the Nifty 500 Multicap 50:25:25 has given a return of 14.23% for the same period.
Fund Managers for ABSL Multi Cap Fund
- Dhaval Shah is a Fund Manager and Senior Analyst with Aditya Birla Sun Life AMC Limited (ABSLAMC). He has an overall experience of more than 16 years in Indian equity markets and has been a part of ABSLAMC since 2015. Before ABSL AMC, Dhaval worked with Reliance Capital Asset Management Ltd., Morgan Stanley Investment Management, and Edelweiss Securities Ltd.
- Harshil Suvarnkar is a fund manager with Aditya Birla Sun Life AMC Limited. He has an overall experience of 11 years in the financial services industry. Before joining ABSLAMC, he was associated with Indiabulls Housing Finance Limited for ten years as Head – Markets, Treasury heading treasury investments, Asset Liability Management (ALM), and capital market borrowings.
- 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 can consider this fund. Investors who want to invest in equities of companies across various market capitalizations can consider this fund.
Why invest in this Fund?
- This fund seeks out opportunities across large, mid, and small caps, which makes it suitable to take advantage of a likely broad-based market rally.
- Growth-boosting policy measures are directed across sectors and can bring inclusive and diverse growth. This fund seeks out potential from across the board.
- The fund can provide investors with the stability of large caps and the growth potential of emerging mid-caps and small caps.
- The funds-focused and disciplined approach, along with its bottom-up investing strategy, is directed towards identifying and investing in growth opportunities as and when they arise.
Time Horizon
- One should look at investing for at least five years or even more.
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
ABSL Multi Cap Fund focuses its investment in equities of various companies across market caps. This allows the investors to have exposure to companies of different sizes and simultaneously gives an advantage of stability and growth potential.
However, since the fund was launched in May 2021, it will be crucial to monitor its performance over the long term.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
