Birla Sun Life Frontline Equity Fund

Birla Sunlife Front Line Equity Fund is managed by Mr. Mahesh Patil. It is a well-diversified fund across sectors, which is in line with BSE 200, and an emphasis on large-cap allocation, but not exclusively focused on them. The consistent and stable growth achieved by this fund makes for a strong investment case. Existing investors can hold and keep a close watch on its performance. 

Where does Birla Sun Life Frontline Equity Fund invest your money?

Birla Sun life Front Line Equity Fund is an large cap oriented equity fund which means your money will be invested in stocks of large sized companies. Large cap companies tend to be stable compared to mid-cap and small cap companies. However exposure to mid and small cap companies is not avoided because of its tendency to give kicker returns. This fund has 73.51% exposure to large companies, 24.39% exposure to medium size companies and about 1.02% exposure to small size companies.

Suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
Not Suitable
  • Creating wealth
  • Lifestyle needs
  • Short term needs
How much to invest?

Minimum one time investment is Rs 5,000 and minimum SIP is Rs 1,000. Do not make  Birla Sun Life Frontline Equity Fund as part of your core portfolio. Core portfolio includes investments that are made for your basic goals and makes up about 70% of your investment portfolio. Birla Sun Life Frontline Equity Fund can be part of your satellite portfolio. Do not make the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio. 

Our recommendation for fresh investment
Our recommendation for existing investment
How has Birla Sun Life Frontline Equity Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Aug 2002, your value of investments would be around Rs 9.93 lakhs. If you had invested Rs 1 lakh for 5 years, the value of your investments would be around Rs. 1.48 lakhs. The performance has been similar to or at times better than other funds in this category. The fund has been giving around 8.27% returns to those who have stayed invested for 5 years.

Assume you had invested Rs 10,000 every month in Birla Sunlife Front Line Equity Fund through SIP for the past 5 years today you would have around Rs 8.50 lakhs.

How will Birla Sun Life Frontline Equity Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid size companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

When to review?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What are the charges applicable?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Birla Sunlife Frontline Equity Fund is 2.35%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

When to enter?

Now! There is no good time to invest rather than now. Do not try to time the market and especially so if it is an SIP. Do not follow news channel and other experts to know the right time to invest. In the long run it does not matter. Mutual fund is unlike a stock where you are looking at the right price. This job will be done by the mutual fund scheme manager. If you have planned your investments and decided on the amount you want to invest do not think further, just go ahead. 

When to exit?

Withdraw when your goals are closer to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you did not withdraw within 1 year. Birla Sun Life Frontline Equity does not qualify for sec 80C ELSS benefits.

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