Aditya Birla Sun Life Frontline Equity Fund Wealth Creation Study

Monthly SIP of Rs 10,000 amounting to Rs 25.8 lakhs would have grown to over Rs 2 crores in 21 years

Lumpsum investment of Rs 1 lakh would have grown to nearly Rs 45 lakhs in 21 years

Bengaluru, April 2nd , 2024: Aditya Birla Sun Life AMC Limited (ABSLAMC) was incorporated in the year 1994. Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc. are the promoters and major shareholders of the Company. ABSLAMC is primarily the investment manager of Aditya Birla Sun Life Mutual Fund, a registered trust under the Indian Trusts Act, 1882. The asset manager has reported that Aditya Birla Sun Life Frontline Equity Fund generated more than Rs 2 crores with a monthly systematic investment plan (SIP) of Rs 10,000 in 21 years. That implies a compounded annual growth rate (CAGR) of 16.5% during the same time.

Similarly, a lumpsum investment of Rs 1 lakh would have grown to nearly Rs 45 lakhs in 21 years. That’s a CAGR of 19.3% since inception.

The fund was launched on 30 August 2002. The open-ended equity scheme is managed by Mahesh Patil (since November, 2005) along with Dhaval Joshi (since November, 2022). The fund manager(s) combines a top down & bottom-up approach for making investing decisions and maintains sector exposure within the benchmark’s sectoral weight range. The scheme has a bias towards blue-chip companies and at the same time it also has a certain flexibility to invest in better performing companies outside the blue-chip space. The fund essentially follows the GARP (Growth At a Reasonable Price) philosophy to identify companies that have the potential to grow faster than the industry over the long-term and are available at reasonable valuations adjusted for growth. Investors stand to potentially gain from this strategy. The fund aims to invest in equity and equity-related securities, diversifying across industries in alignment with the Nifty 100 benchmark index.

Commenting on the wealth creation study, A. Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC Ltd said, “In an evolving market landscape, where investors seek both growth potential and stability, Aditya Birla Sun Life Frontline Equity Fund has consistently strived to provide both, by investing in blue chip companies. I am confident that the fund will continue to remain true to its philosophy and follow the discipline shown over the years by proactively managing risk and deliver consistent performance in both bull and bear market phases. The fund size has grown to more than Rs 20,000 crores from Rs 10 crores in over 2 decades purely based on discipline, consistency and investor experience.”

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