- Editor Rating
- Rated 5 stars
- Birla SL Balanced 95 Fund
- Reviewed by:
- Published on:
- Last modified:
Birla SL Balanced 95 Fund is an open ended balanced scheme which aims to generate capital growth in the long term along with current income via a portfolio with specified allocated investment of 65 percent in equity and 35 percent in debt and money market instruments.
The secondary focus is on dividend distribution and generation of income. It is thus a scheme with an objective to achieve long term investment growth at moderate risk levels by maintaining a fine balance between safety offered by debt and growth potential provided by equity.
Presented below is a comprehensive review of this balanced fund which will give you all the relevant information that you need, so as to make an informed choice about whether to buy, sell, or hold this fund.
Basic costs and other information
Birla SL Balanced 95 Fund was launched on February 10, 1995. That is more than two decades of success in the mutual fund market. As of Jun 30, 2017, this equity-focused fund has assets of INR 9,259 crores. The minimum required investment for lump sum investment route as well as the SIP or Systematic Investment Planning method is INR 1,000.
The expense ratio as of 31st May 2017 is 2.23 percent. For units which are over 15 percent of the investment, if investors redeem it within a period of one year or 365 days of holding it, then the exit load is 1%.
Mahesh Patil has been the fund manager since January 2014. Pranay Sinha joined as fund manager in August 2015, while Dhaval Shah joined in November 2016. Mahesh Patil holds a B.E (Electrical) degree, an MMS in Finance, and a Chartered Financial Accountant (CFA) from Hyderabad’s ICFAI. He had previously worked for Motilal Oswal Securities, Reliance Infocom Ltd., and Parag Parikh Financial Advisory Services Ltd.
Pranay Sinha has an Aerospace Engineering B.Tech degree from IIT Kharagpur and a PGDM from IIM Calcutta with Major in Finance. Before Birla SL Balanced 95 Fund, he worked for Morgan Stanley Investment Management Pvt. Ltd., BNP Paribas Bank, and ICICI Prudential Asset Management Co. Ltd.
Dhaval Shah holds a B.Com degree from University of Mumbai and an MBA from Somaiya Institute of Management Studies & Research. He is also a qualified CFA. He has more than 6 years of experience in investment, which includes jobs at Morgan Stanley and Reliance Capital AMC.
Allocation of the fund
As of 31 May 2017, the fund’s allocation stands as 71.06 percent in equities, 18.97% in debt, 7.96% in Cash/Call, 1.65% in mutual funds, and 0.41% in others.
As of 31 May 2017, the top 6 sectors that the fund’s portfolio focuses on include Banking/Finance (22.77%), Automotive (6.48%), Pharmaceuticals (4.90%), Oil & Gas (4.60%), Technology (4.08%), and Metals & Mining (3.74%).
As of 31 May 2017, the top 6 stocks that make up the fund portfolio include HDFC Bank (4.35%), ICICI Bank (4.23%), Infosys (2.42%), IndusInd Bank (2.06%), Yes Bank (1.87%), and Eicher Motors (1.68%).
As of July 10, 2017, Birla SL Balanced 95 Fund has produced a 13.42 percent return per annum on investment in the last 10-years period. This shows that the fund beat the category average of 10.76 percent for the same period. From the time of launch the fund has delivered 21.19 percent per annum returns.
In the past 1, 3, and 5 years, the fund has shown 18.17, 15.68, and 18.14 percent returns per annum. Thus the 3-year returns of the fund are nearly 2% points better than the category returns. On a 5-year period, the outperformance margins of the fund vis-à-vis the category is also 2% better.
If the topmost holdings are taken into consideration, then it can be said that the Birla SL Balanced 95 Fund heavily leans towards the banking and finance sector. As per data of the past 3 years, the fund’s standard deviation, i.e., the volatility of the returns of the fund vis-à-vis its average, is 10.37% as of June 30, 2017. This is marginally higher than the category average which is 9.66% for the same period.
When the returns of Birla SL Balanced 95 Fund are compared with its peers during the past 5 year period, then at 18.14 percent returns it has not done as well as other similar funds like HDFC Balanced Fund (18.95%), ICICI Prudential Balanced Fund (19.51%), L&T India Prudence Fund (19.68%), and SBI Magnum Balanced Fund (19.09%). When looking at the fund’s returns from a 3-year perspective, then other funds in the category show returns which are 1 percentage points poorer or better than Birla SL Balanced 95 Fund returns of 15.68%.
It is possible to achieve more only where sufficient precautions have been put into place. Birla SL Balanced 95 Fund is one such scheme that offers the investors the unique balance of growth and safety. A fund that has been successful for more than 19 years, deftly allocates investments between equity and equity linked securities and money market and debt instruments, with the aim to strike a balance between stability and growth prospective.
The fund’s investments are majorly biased towards large caps with a high growth aim. The equity section of the fund is invested in varied stocks that are diversified across sectors and industries, with the continued focus on creation of long-term capital growth. The scheme also keeps open adequate room for flexibility as the allocation for equity can range anywhere between 65-75 percent. This ensures that the returns are maximized while avoiding market unpredictability.
The debt part is invested in debt instruments which are safer so as to minimize volatility and achieve and maintain stability. The debt portfolio quality is also really good with limited sensitivity to interest rate.
On the basis of risk adjustment, Birla SL Balanced 95 Fund is definitely one of the best long-term capital growth investment opportunities with moderate to aggressive levels of risk. Investors in the category of moderate risk with long-term financial goals or who are planning for retirement may find this fund to be suitable.
Should I sell, buy, or hold?
The consistent and strong performance by Birla SL Balanced 95 Fund since 1995 makes us give it a thumbs-up. Our suggestion to all investors is – “Buy.”
Excellent Fund Manager
Excellent Fund Size
Excellent Fund House
Good Performance Consistency
High Expense Ratio