Indian economy has always been and acted like a dynamic entity whose activity has always been cyclical and not linear. Whenever it went up or down in the cycle, it leads to the changes in the macroeconomic indicators. Amongst all these, the most intriguing and interesting points are the phases of the stock market. Now, as we can see, the Indian economy is on the track of recovery and investors have again started putting their faith in the market. Mutual fund industry has taken an upturn with an exponential increase in the number of investors. People have come up strong and bold with increased investments in mid-cap mutual funds. There are many players that have been cherishing their space in the portfolios of the investors, but the one that can be found in the baskets of almost all the investors is Aditya Birla Sun Life Pure Value Fund. The scheme aims to generate long-term capital appreciation by building up a portfolio that invests majorly in equity and equity-related securities of stocks belonging to mid-cap space.
Aditya Birla Sun Life Pure Value Fund- Portfolio Composition
Currently, the portfolio consists of a mix of 70 stocks of which top 10 stocks account for 30.29% of portfolio allocation. The average market capitalization of the fund as on April 30, 2018 is Rs.11,909.81 crore with 8.56%, 24.88%, 37.86%, and 28.77% allocation in giant, large, mid, and small companies, respectively. Let us have a look at the top sector holdings of the fund against its benchmark, i.e., S&P BSE 200-
We can easily see in the table above that fund is overweight in the sectors where benchmark’s allocation is low. For example, fund is overweight in chemicals, energy, automobile, and construction, but is underweight in FMCG and financial contrary to its benchmark’s behavior.
Aditya Birla Sun Life Pure Value Fund- Performance
To know how the fund has been performing, it’s important to keep a measure of its performance and to do so, we compare its calendar year returns since 2009 with that of its benchmark.
What an outstanding performer this fund is. It has been beating its benchmark since 2009 and stood strong in the bear market phase of 2011. There is no doubt why this fund is every investor’s choice. Its historical performances speak for why it is an epitome of success among its peers.
Why Invest in This Fund?
This is one of the few true value funds which is a consistent performer and has been awarded four-star rating by Value Research, a stock advisory. This fund is market-cap agnostic and has its investment diversified in different market-cap companies. On top of everything, the fund managers follow up the value investing strategy to achieve appreciable growth in the portfolio. They buy stocks that are presently undervalued in the market and believe that those stocks would reveal their potential in the near future.
Those investors who want to achieve growth on the invested capital by investing in mid-cap stocks and can stomach moderately high risk can plan to invest in this fund.
The author is a financial expert working with MySIPonline and has experience of over 5 years in the mutual fund industry. She researches about top performing mutual funds and writes reviews on the same.