The Aditya Birla Sun Life Manufacturing Equity Fund is an equity mutual fund focused on investing in companies involved in manufacturing activities in India. Launched on January 13, 2015, the fund aims to generate long-term capital appreciation by investing in a diversified portfolio of manufacturing sector companies.
Fund Overview
- Launch Date: January 31, 2015
- Category: Equity, Thematic – Manufacturing
- Benchmark: S&P BSE India Manufacturing TRI
- Total Assets: ₹1,005.6 Cr as of May 31, 2024
- Expense Ratio: 2.31%
Investment Objective
The fund aims to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of companies engaged in manufacturing activities. The portfolio includes companies across various segments within the manufacturing sector, ensuring a diversified exposure to the industry.
Performance
- NAV: ₹31.39 as of June 21, 2024
- CAGR Since Inception: 12.96%
- 1-Year Return: 49.55%
- 3-Year Return: 17.95%
- 5-Year Return: 20.12%
The fund has consistently delivered competitive returns, outperforming many peers in the thematic category. Its performance is driven by strategic investments in top manufacturing companies like Reliance Industries, Bharat Electronics, and Larsen & Toubro, which constitute significant portions of the portfolio
Top Holdings
- Reliance Industries: 5.66%
- Bharat Electronics: 5.29%
- Larsen & Toubro: 4.73%
- Century Textiles: 4.00%
- Cummins India: 3.90%
These holdings reflect the fund’s focus on established players within the manufacturing sector, ensuring stable growth and potential for capital appreciation
Risk and Suitability
The fund is categorized as having a very high riskometer level, suitable for investors with a high-risk appetite looking for long-term investments. Given its focus on the manufacturing sector, the fund’s performance is closely tied to the economic cycles affecting this industry.
How to Invest
Investors can purchase the fund through various platforms including the Aditya Birla Sun Life Mutual Fund website, MF Central, MF Utility, and other mutual fund distribution channels. The investment can be made via lump sum or Systematic Investment Plan (SIP)mysiponline
Conclusion
The Aditya Birla Sun Life Manufacturing Equity Fund offers an opportunity to invest in the manufacturing sector, aiming for long-term capital appreciation. While the fund has demonstrated significant returns in recent years, it also comes with high risk and a higher-than-average expense ratio. Before purchasing this fund, investors should think about their investing objectives and risk tolerance.
For more detailed information, you can visit the MYSIPonline
