Birla Sun Life Frontline Equity Fund - Rating & Review - Invest

Birla Sun Life Frontline Equity Fund – Rating & Review – Invest

Roboadviso     Mutual Funds,Mutual Funds Rating     Posted On, Sat 8th October, 2016     No comments
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Birla Sun Life Frontline Equity Fund

Birla Sun Life Frontline Equity Fund is a large cap equity fund, which aims for long term growth of capital, with a targeted equity allocation across various sectors and industries. Let us find out how the fund has fared so far; and whether you should buy, hold or sell it.

Basic information and costs
It was launched on August 30 2002. Birla Sun Life Frontline Equity Fund has been benchmarked against S&P BSE 200. The riskometer deems it ‘moderately high’. This open-ended fund has 83 percent turnover. The minimum investment needed for this fund is Rs. 1000. The minimum SIP is Rs. 1000 with six post-dated checks, needed. The exit load is 1 percent, if redeemed within 365 days. The asset size is Rs. 13,634 as on August 31, 2016, and the expense ratio is 2.21 percent.

Fund allocation
89.23 percent of the corpus is invested in equities, with 3. 72 in debt, while 7.05 percent is in cash and others. The top five sectors are financial (29.56 percent), energy (12.31 percent), FMCG (8.17 percent), technology (8.13 percent) and automobile (7.59 percent).

The top 10 holdings for Birla Sun Life Frontline Equity Fund are HDFC Bank (6.93 percent), Infosys (4.29 percent), Reliance Industries (4.11 percent), ITC (3.56 percent), ICICI Bank (3.21 percent), Larsen & Toubro (3.19 percent), Tata Motors (3.02 percent), Indusind Bank (2.44 percent), HCL Technologies (2.39 percent) and Grasim Technologies (2.39 percent).

Performance
Since the time it was launched, Birla Sun Life Frontline Equity Fund has delivered 22.81 percent per annum. It has delivered 14.21 percent, 23.15 percent, 18.16 percent and 14.95 percent per annum in the 1, 3, 5 and 10-year period, respectively. In all these periods, the fund has beaten the benchmarked return and category average.

Analysis
The fund manager Mahesh Patil and his team can be credited for a great run of the fund across the last ten years. In the last year, it has been seen that the fund has invested in the range of 84 to 90 percent in large caps with the mid-cap allocation between 10 to 16 percent. The mid-cap allocation is marginally more than the rest of the funds in the category. By nature, the fund rarely picks stocks outside the BSE 200 index. The fund performs well at bull markets and does even better during downturn, as was evident in 2008, 2011 and 2015.

The flip side, however, is that the fund has a huge asset size of Rs. 13,600 crore, but considering the large cap inclination, that should not be a problem. The fund is backed by a solid management team which takes judicious stock picks.

Should I buy, sell or hold Birla Sun Life Frontline Equity Funds?
This is a fund with proven results across different market cycles. Consistent performance by Fund Manager Mahesh Patil and team is commendable. Birla Sun Life Frontline fund should be part of every portfolio.

Pros

Excellent Performance
Excellent Consistency
Good Fund Size
Excellent Fund House
Excellent Fund Manager

Cons

High Expense Ratio

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