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Birla Sun Life Top 100 Fund is a product of the Aditya Birla Group and Sun Life, a leading Canadian financial services firm. It is one of the top-performing mutual funds in India. The fund has now been renamed as Aditya Birla Sun Life Focused Equity Fund. If you are looking at medium to long-term capital appreciation by investing in a diversified portfolio comprising the top 30 companies listed on the stock exchange, you can consider this fund.
The selection of the companies is based on market capitalization and the top 30 companies with the highest market capitalization. A part of the portfolio is also invested in ADRs or American Depository Receipts and GDRs or Global Depository Receipts. Investments are also made in listed companies overseas according to the objectives of the fund.
Various funds have different objectives, and Birla Sun Life Top 30 Fund seeks to create wealth for the investors in the long term by investing in equity.
This large cap focused fund invests in the top 30 companies in India according to their market capitalization. The investment is made in equity and equity related securities.
The highlights of the fund are:
Investing in large companies leads to greater opportunities for wealth creation. As these companies are well-known, there is stable growth with safety compared to mid-cap and small-cap funds. This fund is meant for investors who are interested in established companies with a long-term track record.
The investment objective of the Scheme is to achieve long term capital appreciation by investing in up to 30 companies with long term sustainable competitive advantage and growth potential.
Being a large-cap fund, Birla Sun Life Top 100 Fund has the highest investment in large cap funds.
Click here to know about overall performance of Aditya Birla Sun Life Focused Equity Fund
Aditya Birla Sun Life Focused Equity Fund Erstwhile Top Holdings of Birla Sun Life Top 100 Fund
|Stock Invested in||Sector||Value(Cr)||% of Total Holdings|
|HDFC Bank Ltd||Banks||3896.9||9.65%|
|ICICI Bank Ltd||Banks||3396||8.41%|
|Infosys Ltd||Computers - software||2308.2||5.72%|
|Reliance Industries Ltd.||Refineries/marketing||2128.5||5.27%|
|Larsen & Toubro Ltd||Engineering, designing, construction||2047.7||5.07%|
|Housing Development Finance Corporation Ltd||Housing finance||2030.3||5.03%|
|National Thermal Power Corporation Ltd.||Power||1694.3||4.19%|
|State Bank Of India||Banks||1681.4||4.16%|
|Alkem Laboratories Ltd||Hospital||1325.8||3.28%|
There are various reasons why investing in the Birla Sun Life Top 100 Fund makes sense. As mentioned earlier, Birla Sun Life Top 100 Fund primarily invests in well-established large cap companies with a long-term track record and high standards of corporate governance. If you want to invest in stocks which fall in the large cap category in terms of market capitalization, then Birla Sun Life Top 100 Fund should be considered.
The investment style is a blend of growth and value investing where companies which are undervalued or those that have the potential to grow at a steady rate are selected. This leads to capital appreciation in the medium to long-term.
The Birla Sun Life Top 100 Fund follows a bottom-up approach when it comes to stock selection. Under this method, the fund looks at companies which are steady performers, irrespective of the sector it is in.
The factors which are important for selecting a particular stock are a strong competitive position in reliable businesses which are operated by quality management.
The stocks will be analyzed internally by the fund manager according to the following parameters:
Stocks are reviewed on a regular basis on the above-mentioned parameters. If it is found that there is a deviation in terms of even a single factor, the stock will be replaced by another one who meets the criteria. Hence, the portfolio is not stable and it keeps changing according to the performance of the companies.
You can invest in the Birla Sun Life Top 100 Fund online or offline. Whether you invest online or offline, you will need to submit certain documents along with your application form.
When these documents are ready, you can open a mutual fund account which suits your risk appetite and financial goals.