Birla Sun Life MNC Fund

Birla Sun Life MNC fund is one of the better performing funds in its category. This fund is being managed by Ajay Garg. The fund invests exclusively in securities of multinational companies in order to fuel growth in the long term. Birla Sun Life MNC fund is managed by Ajay Garg. He took over the fund from June 2009.

Where does Biral Sun Life MNC Fund invest your money ?

Birla Sun Life MNC Fund is a mid cap fund which means most of your money will be invested in medium sized companies. About 48.19% of the fund’s money is allocated to stocks of mid size companies, 21.77% to stocks of small size companies and the remaining to those of large companies. Mid size stocks can give kicker returns as they turn into large stocks but this happens not so frequently.

Suitable for what?
  • Creating of quick wealth
  • Life style Needs
Not Suitable for?
  • Child's Education
  • Child's Marriage
  • Planning for Retirement
  • Buying a house 
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 MNC 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 MNC Fund can be part of your satellite portfolio due to its huge exposure to mid cap stocks. 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
Recommended
Our recommendation for existing investment
Recommended
How has Birla Sun Life MNC Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Dec 1999 your value of investments would be around Rs 24.83 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.99 lakhs. The performance in the last five years has been better or similar to other mid cap mutual funds. The fund has been giving around 14.83 % every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Birla Sun Life MNC through SIP for the past 5 years today you would have around Rs 9.62 lakhs.

How will Birla Sun Life MNC 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 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 MNC Fund is 2.92%. 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 if it is an SIP. Do not follow news channel and other experts trying 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 do not withdraw within 1 year. Birla Sun Life MNC does not qualify for sec 80C ELSS benefits.

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