Birla Sun Life Frontline Equity: An Open Ended Equity Growth Fund

Fund Manager: Mahesh Patil

Date of Allotment: November 2008

An open-ended growth scheme with the objective of long-term growth of capital, Birla Sun Life Frontline Equity has a target allocation of 100% equity by being as diversified across various industries and or sectors as its chosen benchmark index, BSE 200.

Portfolio Analysis

In line with its objectives, the scheme focusses on front-line stocks. It has the highest exposure in the banking sector, followed by software, power, industrial capital goods and oil.

Notably, the exposure to any single stock has been under 5%. The top three sector holdings for the fund and the top 10 stock holdings are under 30%, respectively.

By and large, the scheme appears to be holding on to the stocks and the sector allocation has remained consistent over a period of time. While it has been an underperformer in the last one year, its performance over a period of time has been reasonable.

The table below contains schemes which track the BSE 200 and notably, Birla Sun Life Frontline Equity is one of the better performers. Notably, barring HDFC Top 200, no other schemes have outperformed the benchmark index in the last one year.

 

The Sharpe ratio has been higher as compared to its peers and this indicates that the scheme’s risk-reward ratio is favourable.

Risk Profile

Standard Deviation: 33.89
Beta: 0.85
Sharpe Ratio: 0.39

Outlook: There are better performers in the diversified category. However, the risk-reward ratio for this scheme is favourable.

Caveats: Market Conditions

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