Birla Sun Life Infrastructure Fund- Plan A

Birla Sun Life Infrastructure Fund is an average fund in the infrastructure category. This fund is managed by Mahesh Patil and Naysar Shah.The infrastructure sector in general has given mixed performance in the last 3 years. If you already hold units in this fund you can continue to do so. Sector funds like this one should only be part of one’s satellite portfolio.

Where does Birla Sun Life Infrastructure Fund invest your money?

Birla Sun Life Infrastructure Fund is an infrastructure fund which means your money will be invested in giant and large companies. And just to give kicker returns the fund has some exposure in mid cap companies as well. Large cap companies tend to be stable compared to mid cap and small cap companies. The fund invests about 41.63% in large companies, 30.27% in medium size companies and 22.99% in small companies.

Suitable for what?
  • Creation of wealth
  • Lifestyle needs
Not suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • House Purchase
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 1000 per month. Do not make Birla Sun Life Infrastructure Fund as part of your core portfolio. Core portfolio is investments that are made for your basic goals and makes up about 70% of your investment portfolio. Birla Sun Life Fund can be part of your satellite portfolio. Do not do 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
Not Recommended
Our recommendation for existing investment.
Recommended
How has Birla Sunlife Infrastructure Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in December 2005, your value of investments would be around Rs 1.47 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 96650. The performance has been better or similar to other mutual funds in this category. The fund has been giving at around -0.67% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Birla Sun Life Infrastructure Fund through SIP for the past 5 years today you would have around Rs 6.59 lakhs.

When to review the performance?

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 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 Sun Life Infrastructure Fund is 2.76%. 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 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 do not withdraw within 1 year. Birla Sun Life Infrastructure Fund does not qualify for sec 80C ELSS benefits.

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