Large and Midcap is the category of mutual funds which can allow the investors to take advantage of an extended portfolio which can provide stability of the large-cap companies which are decorated by the fruitful returns of the mid-cap companies. Aditya Birla Sun Life Equity Advantage Fund is one such large and mid-cap fund which has been a consistent performer which has provided the perks of large as well as mid-cap stocks to its investors since inception.

Aditya Birla Sun Life Equity Advantage Fund Growth is a renowned scheme from the large and mid-cap category which was earlier known by the name of Aditya Birla Sun Life Advantage Fund (G). The fund aims to provide long-term capital appreciation by taking conviction bets of moderate risk after diversified research throughout the Index of S&P BSE 200. It has maintained a higher mean than the category’s average and benchmark since inception though, in the negative markets of 2008 and 2011, the annual returns slipped pass the benchmark in negative. It has taken good advantage of the momentum in the equity markets which can be concluded from the dramatic performance of Aditya Birla Sun Life Equity Advantage Fund in the markets of 2004, 2009, and 2014.

What Is the Portfolio Composition?

The fund manager keeps the portfolio inclined towards the large-caps but also influences the promising quality stocks of mid-cap in a significant amount. The ratio between large and mid-cap stocks is generally kept 60:40. Aditya Birla Sun Life Equity Advantage Fund follows the growth style of investment by actively seeking for stocks with good PE ratio. 58 shares are currently present in the portfolio with a PE ratio of 27.55. More than one-third of the total corpus is owned by the financial giants as well as mid-cap emerging stocks as the financial sector is looking promising in the current market scenario. Technology and consumer durables companies have also impressed the equity investors in recent years, hence altogether 20% of the fund’s corpus is allocated in them. (data as of 10th Aug 2018)

Performance Comparison and Risk Measures

The consistency of Aditya Birla Sun Life Equity Advantage Fund can be observed from the annualised return of 18.41% it has generated since inception in February 1995. The fund is slightly more volatile as the standard deviation is 15.80, but the beta is 1.00. Both are higher than that of the category’s average which means this scheme has a slightly higher risk than its peers but also generates higher returns than them. In the last 5 years, it has produced an annualised return of 25.36% while the benchmark returns are at 18.77%. The negative markets have been a challenge, but the favourable market has been handled well by the fund manager. (data as of 10th Aug 2018)

Who Is the Fund Manager?

Mr Satyabrata Mohanty solely handles the corpus of Aditya Birla Sun Life Equity Advantage Fund since October 2011. After he was appointed as the fund manager, the fund has never gone below the benchmark though no harsh markets have been faced. Mr Mohanty has expertise in picking the growth-oriented stocks as he has been a part of Aditya Birla group since last 17 years with 12 years in the finance and equity research. He is a B.Com and CA and manages many prominent schemes at Aditya Birla Sun Life Mutual Fund.

Who Can Invest?

Large & mid-cap schemes are considered good bets for long-term capital appreciation and wealth creation through equities. Aditya Birla Sun Life Equity Advantage Fund is a slightly aggressive variant in its category which has consistently provided better returns than its peers. Appropriate tenure for investment is 5 years. It is suitable for moderate to high-risk takers who seek constant growth through the best in class equity stocks.

The article contains the features of Aditya Birla Sun Life Equity Advantage Fund (G) regarding mutual fund investments.

Author's Bio: 

Dishika Baheti is a financial writer associated with MySIPonline. She gives honest opinions to the investors regarding investments after in-depth research of various mutual fund schemes.