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Birla Sun Life Top 100 Fund

Aditya Birla Sun Life Focused Equity Fund

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.

Overview of Birla Sun Life Top 100 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:

  • Capital growth over the long term.
  • Choice of the top 30 companies in terms of market capitalization for investments in equity and equity-related securities.

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.

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Investment Objective of Birla Sun Life Top 100 Fund

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.

Statistics of Birla Sun Life Top 100 Fund

Being a large-cap fund, Birla Sun Life Top 100 Fund has the highest investment in large cap funds.

  • Date of inception: 24th October 2005
  • CRISIL rank: As of June 30th 2019, the fund has a 3 star rating in the focussed mutual fund category.
  • Plans: There are two plans, namely Regular and Direct. Under the Regular plan, you invest online or offline through registered intermediaries. Under the Direct plan, you invest directly without the assistance of an independent financial advisor. You save the commission in the direct plan, and that is why you get a higher NAV.
  • Options: There are two investment options, dividend and growth. Under the dividend option, dividends are paid out as and when they accrue. This results in a fall in the NAV. Under the growth option, your NAV goes up over time.
  • Schemes: The schemes you can choose from are the growth, dividend, direct growth, and direct dividend option. The growth and dividend plan can be invested in through intermediaries like banks or mutual fund agents.
  • Entry Load: There is no entry load.
  • Exit Load: There is an exit load of 1% if the fund is redeemed or switched before 365 days since the allotment date. Units issued under the bonus and dividend reinvestment do not attract an exit load.
  • Minimum Investment: You can invest in this fund with a minimum amount of Rs. 1000. You need to invest Rs. 1000 at least for any additional purchases. Repurchase is made in multiples of Re. 1.
  • SIP: The minimum amount that you can invest through an SIP is Rs. 1000.
  • Product Label: The fund is considered moderately high-risk. The target investors are those who seek long-term appreciation of capital by investing in a portfolio of top 30 companies according to market capitalization.
  • Benchmark: The performance of the fund is measured against the Nifty 50TRI. This index comprises fifty well-diversified stocks. There are 23 sectors included in it. The index is important when measuring the performance of fund portfolios, index funds, or index-based derivatives. The Indian index services and Products Limited owns and manages the index.
  • STP: Systematic Transfer Plan or STP can be made on a daily basis from this fund.
  • Redemption: This is done in ten working days from the date of receipt of the request for redemption.
  • Taxation: Being an equity mutual fund, there are two types of gains that occur. They are short and long-term capital gains. If you redeem them before a year, you will have to pay short-term capital gains and taxed at 15%. On the other hand, if you redeem it after a year, you will pay long-term capital gains tax. The long-term capital gains over Rs. 1 lakh will be taxed at 10%.

Birla Sun Life Top 100 Fund Performance

Aditya Birla Sun Life Focused Equity Fund (Erstwhile Birla Sun Life Top 100 Fund) Performance

Click here to know about overall performance of Aditya Birla Sun Life Focused Equity Fund

Top Holdings of Birla Sun Life Top 100 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%
ITC Limited Cigarettes 1377.7 3.41%
Alkem Laboratories Ltd Hospital 1325.8 3.28%

Why Invest in Birla Sun Life Top 100 Fund

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.

Investment and Stock Selection Strategy

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:

  • Quality management who have a proper vision in a company with a long, well-established track record.
  • A stable and reliable business.
  • The future growth potential of the company and possibilities of scaling up the business.
  • Financial discipline in terms of managing the company’s finances and stability of returns.
  • The worth of the company as compared to its market price or its value and the potential for stable growth.

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.

Documents Required for Aditya Birla Sun Life Focused Equity Fund

Erstwhile Birla Sun Life Top 100 Fund)

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.

  • Application form: You will need to fill up more than one application form while investing in a mutual fund. The first form would be required for investing in the fund, the next fund would be for starting a systematic investment plan or SIP, and the ECS form will have to be filled up for transferring funds electronically. Some companies may require you to fill out a Risk Profile Form.
  • KYC compliance: Verification of your PAN will be required as per Know Your Customer or KYC norms if you want to invest in a mutual fund. Your KYC compliance can be checked at the CDSL Ventures website. KYC registration can also be done at this website. If you are already KYC compliant, then a KYC acknowledgement letter or copy of the page showing KYC compliance needs to be submitted. If you are not KYC compliant, then you need to fill up the KYC application form along with a passport-size photograph.
  • Proof of identity: The documents which are acceptable as proof of identity are your PAN card, Aadhaar, Passport, Driving license, Voter's ID card, or any ID card issued by the Central/State government.
  • Proof of address: The documents that can be submitted as address proof are Aadhaar, driving license, sale agreement of residence, insurance copy, flat maintenance bill or Passport.
  • Investing for minors: When you are investing on behalf of minors, a third party declaration form needs to be submitted.
  • Non-individuals like companies, HUF, or trusts: Apart from the documents mentioned, you would require the Certificate of Registration, Memorandum and Article of Association, address proof, Resolution of Board of Directors, Deed of declaration, of HUF or Trust Deeds.

When these documents are ready, you can open a mutual fund account which suits your risk appetite and financial goals.