Aditya Birla Sun Life Mutual Fund

Aditya Birla Sun Life Equity Savings Fund |Equity Savings Fund - ABSLMF

Aditya Birla Sun Life Equity Savings Fund

(An open ended scheme investing in equity, arbitrage and debt)
Birla Sun Life Frontline Equity Fund

Investment Objective

Aditya Birla Sun Life Equity Savings Fund uses a unique combination of equity derivative strategies, arbitrage opportunities, pure equity investments, debt & money market instruments which together intends to deliver Tax Efficient Growth with Low Volatility.

This product is suitable for investors who are seeking

  • long term capital growth
  • investments in equity and equity related securities in the domestic market (65 to 75%) and in international markets (25 to 35%)

Fund Details

  • Fund Type - Open-Ended
  • Class - Equity
  • Category - Balanced Advantage
  • Min Investment - Rs. 1000/-
  • Fund Manager - Mr. Lovelish Solanki & Mr. Satyabrata Mohanty & Mr. Pranay Sinha
  • Latest NAV - 12.81 (as on 05-Nov-2018)
  • Inception Date - Nov 28, 2014
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Fund Performance

Trailing Return

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Funds are bucketed on various parameters with respect to other funds in their category.
*Annualized returns are displayed for 1 year and above.

Annualized Returns

Fund Management

  • Mr. Lovelish Solanki

    Total Experience : 7 years

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    He has an overall experience of over 7 years in Trading and Dealing. Prior to joining Birla Sun Life AMC, he was Equity / Equity Derivatives - Trader at Union KBC Asset Management Co Limited since February 2011. Before that he worked at Edleweiss Asset Management Co. Ltd since January 2008.
  • Satyabrata M
    Mr. Satyabrata Mohanty

    Total Experience : 16 years

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    ​Mr. Satyabrata Mohanty is a CA, CFA. He has been part of Birla group since last 17 years. He has over 12 years of experience in Finance and Research. He has handled responsibilities across Fund Management (Equity & Debt), Trading and Credit Research functions. Prior to joining BSLAMC, he has worked with Aditya Birla Management Corporation Ltd & joined ABG as a management Trainee.
  • Mr. Pranay Sinha

    Total Experience : 10 years

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    Mr. Sinha has done B.Tech in Aerospace Engg. from IIT Kharagpur and PGDM with Major in Finance from IIM Calcutta.Prior to joining BSLAMC , he has worked with BNP Paribas Bank (October 2010 - August,2014) , Morgan Stanley Investment Management Pvt. Ltd. (March 2008 - October 2010) and ICICI Prudential Asset Management Co. Ltd. (October 2005 - March 2008).
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Different plans shall have a different expense structure. The performance details provided herein are of (regular / direct) plan.

Portfolio and Sector Holdings

Top 10 Holdings (As on 30.09.2018)

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Issuer % to Net Assets
Top 10 Sector Holdings Chart

Fund Summary

Entry Load
Exit Load
Load Comments
N.A.
For redemption/switch out of units within 365 days from the date of allotment: 1.00% of applicable NAV. For redemption/switch out of units after 365 days from the date of allotment: Nil.
Exit Load of 1% for redemption/switch out of units after 365 days from the date of allotment: Nil.

Highlights

  • Long term capital growth and income
  • An open ended equity scheme investing in equity and equity related securities including the use of equity derivatives strategies and arbitrage opportunities with balance exposure in debt and money market instruments

Helping you seize the right window of opportunity.

Presenting, Aditya Birla Sun Life Equity Savings Fund (An Open ended Equity Scheme) – a unique investment opportunity that aims to provide capital appreciation and income distribution by using a combination of equity derivatives strategies, arbitrage opportunities and pure equity investments. This provides a greater degree of diversification than investing in a single asset class. This scheme also provides the tax efficiency of an equity fund i.e. the income becomes tax-free if the holding period is more than one year.
 
 
Highlights
 
  • Tax efficiency
  • Lower volatility
  • Diversified strategy
 
Investment objective
 
To provide capital appreciation and income distribution to the investors by using a blend of equity derivatives strategies, arbitrage opportunities and pure equity investments. The scheme does not guarantee/indicate any returns. There is no assurance that the schemes' objectives will be met.
 
 
Key features of Aditya Birla Sun Life Equity Savings Fund
 
Low volatility – Enjoys low volatility and risk compared to other equity funds due to limited exposure to directional equity

Arbitrage opportunities – A part of portfolio will be managed using the arbitrage strategy by taking advantage of price differentials prevailing in equity market.

Tax efficiency – With an asset allocation mix comprising of spot equity, arbitrage and fixed income, tax treatment is similar to that of equity funds

Diversified strategy – An efficient mix of 3 strategies helps reduce volatility while providing opportunities to participate in the market upside while restricting the downside.
 
 
What is arbitrage opportunity?
 
An Arbitrage opportunity arises when there is a price differential or mispricing prevailing for stocks/index in different markets segments (cash & futures) due to market inefficiencies. It can be used to one's advantage by buying stock/index from the market where the price is lower and selling it in the market where the price is higher and vice-versa. Let us understand this with the help of an illustration –

For example, Company XYZ's stock trades at ` 100 per share in cash market and the same is trading at ` 105 in futures market. An arbitrageur would purchase the stock for ` 100 in cash market and sell it for ` 105 in future market, making the difference of ` 5 per share as profit.

This is assuming the cost to be zero. In practice there is a cost of executing the arbitrage transaction (in this case, it's the STT and the brokerage charges) – The above is only for the purpose of illustration.
 
Birla Sun Life Equity Savings Fund
 
Tax efficiency
 
Particulars
Non Equity Taxation
Equity Taxation
Investment Amount
10,000
10,000
Assumed pre-tax annualised returns
9.00%
9.00%
Interest earned after 1 year
900
900
Amount withdrawable after 1 year
10,900
10,900
Taxable Income / Gains
900
900
Applicable Tax Rate*
33.99%
0%
Tax Liability
305.91
0
Post Tax Gains
594.09
900
Post Tax Annualised Yield
5.94%
9.00%
 
Given the tax advantage, Aditya Birla Sun Life Equity Savings Fund can generate potentially higher post tax returns as compared to non equity investments.
 
*Higher tax bracket assumed for Applicable Tax Rate in respective investment categories (Equity & non Equity) investors are advised to consult their tax advisor in view of individual nature of tax benefits.
 
Get the latest NAV on SMS, send NAV <51> as an SMS to 56161. Premium SMS charges apply.  
  

Discipline

The scheme targets to maintain sector exposure within a certain range of the sectoral weight in the benchmark index i.e. S&P BSE 200, in order to maintain diversification and avoid excessive concentration in a single sector. This discipline also reduces overdependence on a particular industry, aiming to give stability to your portfolio.

Aditya Birla Sun Life Equity Savings Fund

(An open ended scheme investing in equity, arbitrage and debt)

This product is suitable for investors who are seeking

  • long term capital growth
  • investments in equity and equity related securities in the domestic market (65 to 75%) and in international markets (25 to 35%)
  • Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
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Disclaimer

For further details on the Scheme, refer Scheme Information Document and Key Information Memorandum.

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