Birla Sun Life Index Fund

Birla Sun Life Index fund is being managed by a well known manager Ajay Garg. He has 15 years experience in this domain and took over in 2007. The fund’s performance has been unconvincing and has been a laggard. It has never beaten its benchmark S&P CNX Nifty since inception. If you have invested in this fund, exit now to invest in a better performing fund. If you are a new investor you can safely skip this one.

Where does Birla Sun Life Index Fund invest your money?

Birla Sun Life Index fund is a large cap fund which means most of your money is invested in giant and large size companies and a few medium size companies. Large cap companies tend to be stable compared to mid cap and small cap companies. Yet exposure to mid cap companies is not totally avoided due to prospects of kicker returns. The fund invests in stocks in similar proportion as their weight is in Nifty. About 97.88% of the portfolio is exposed to giant and large companies and 2.12% to medium sized companies.

Suitable for what?
  • Child's marriage
  • Child's education
  • Retirement Planning
  • Home Purchase
Not Suitable
  • Creation of wealth
  • Short term needs
Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
How has Birla Sun Life Index performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Sep 2002 the value of your investments would be around Rs 5.82 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.10 lakhs. The performance has been not better than or similar to other diversified mutual funds. The fund has been giving at around 2.04% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Birla Sun Life Index through SIP for the past 5 years today you would have just around Rs 7.46 lakhs.

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 charges apply?

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 7 days an exit load of 0.5% is deducted from your total returns. No exit load applies for units withdrawn post this. Expense ratio of Birla Sun Life Index Fund is 1.66%. 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.

What are the tax implications?

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

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