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Aditya Birla Sun Life AMC Limited

Aditya Birla Sun Life AMC Limited

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    Aditya Birla Sun Life AMC Limited

    Advantages of Investing in Aditya Birla Sun Life small cap fund

    Jun 07, 2024
    5 min | Views 354

    What are Small Cap Companies?

    Small-cap companies are businesses that are still growing and developing. Small caps are ranked from the 251st company onwards in terms of full market capitalization. They are usually smaller in size and value compared to larger, well-established companies, with a worth between ₹250 cr to ₹2,500 cr. Although they are young and have the potential to grow quickly, they also come with higher risk and unpredictability. However, this means that while they have the potential for high returns, they can also be more volatile and carry more risk than bigger, more established companies.

    Know More About ABSL Small Cap Fund

    Why Invest in Aditya Birla Sun Life Small Cap Fund

    1. Superior Long-Term Returns Potential

      As young companies in the early stages of growth, small caps have the potential for high returns in the long run. The fund aims to tap into this by carefully selecting quality stocks through rigorous research.

    2. Diversification Across High Growth Small Caps

      With an AUM of 4,762.48 Cr as on 28th May’24, the fund invests across many small caps. This results in a diversified portfolio with a focus on quality.

      For disclosure of quarterly AUM/ AAUM and AUM by Geography, please visit our website: https://mutualfund.adityabirlacapital.com/

    3. Experienced Fund Management

      The scheme is managed by Mr. Vishal Gajwani and Mr. Dhaval Joshi who have over 15 years of experience in equity research and investment.

    Investment Discipline and Process

    1. Bottom-Up Stock Selection

      The fund follows a bottom-up approach focused on the careful identification of quality small-cap companies. The emphasis is on business fundamentals, growth prospects, quality of management, and reasonable valuations.

    2. Flexibility to Invest Across Sectors

      The fund does not have any sector bias and can invest across sectors and industries in order to tap into the best available small-cap opportunities at any point.

    3. Liquidity Management

      While the core holding is in small-cap equities, the fund also invests a small portion in liquid assets to meet redemption needs.

    Why Small Caps Form Key Part of Long Term Portfolio?

    While investing a major portion in large caps for stability, allocating some portion to high-growth small caps can potentially boost overall returns in the long run. The young small caps of today have the potential to become multi-baggers and large caps of tomorrow. Grabbing these opportunities early on can tremendously enhance wealth creation in the long run.

    However, directly picking small-cap stocks requires exceptional expertise. Small Cap mutual funds provide a professionally managed route to tap this high growth potential in a diversified way. They have the resources and experience to identify quality small caps with strong competitive advantages and growth prospects.

    Conclusion

    Aditya Birla Sun Life Small Cap Fund is a good investment option for participating in India's growing small-cap market. The fund is managed by experienced professionals who focus on choosing quality stocks and diversifying the portfolio to minimise risks. By investing in this fund for a longer period, you can expect good returns and balanced risk management.

    Aditya Birla Sun Life AMC Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. This document represents the views of Aditya Birla Sun Life AMC Limited and must not be taken as the basis for an investment decision Neither Aditya Birla Sun Life Mutual Fund, Aditya Birla Sun Life AMC Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.

    Aditya Birla Sun Life AMC Limited /Aditya Birla Sun Life Mutual Fund is not guaranteeing/offering/communicating any indicative yield/returns on investments.

    Aditya Birla Sun Life Small Cap Fund
    (An open ended equity scheme predominantly investing in small cap stocks)

    This product is suitable for investors who are seeking

    • Long term capital growth

    • Investments primarily in Small cap companies
    *Investors should consult their financial advisers if in doubt whether the product is suitable for them

    Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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