Birla Sun Life Midcap Fund- Plan A

Birla Sun Life MIDCAP fund is managed by Sanjay Chawla. Sanjay has an overall experience of 22 years with over 15 years in Equity research. If you have already invested you can continue to hold it but keep a close watch on its performance. Its overall performance has been average yet as a new investor you can find better alternatives than this fund. Do not allocate more than 30% of your investment funds to this fund.

Where does Birla Sun Life Midcap Fund-Plan A invest your money?

Birla Sun Life Midcap Fund-Plan A is a mid cap fund which means most of your money will be invested in medium sized companies.  The level of risk is somewhat higher than a fund focused on large and liquid stocks. Mid cap companies are more volatile compared to large cap companies but they have the potential to become large cap companies and give you windfall gains. only 4.02% is invested in large cap companies, 77.21% in mid cap companies and 18.57% in small cap companies.

Suitable for what?
  • Creation of wealth
  • Lifestyle needs
Not Suitable
  • Child's marriage
  • Child's education
  • Retirement Plans
  • Home Purchase
  • Short term needs
How much to invest?

Minimum one time investment is Rs 10,000 and minimum SIP is Rs 2000. Do not make Birla Sun Life Midcap Fund-Plan A 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 Midcap Fund-Plan A 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
Not Recommended
Our recommendation for existing investment
How has Birla Sun Life Midcap Fund-Plan A performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Oct 2002 your value of investments would be around Rs 11.32 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.30 lakhs. The performance in the last five years has not been better or similar to other mid cap mutual funds. The fund has been giving around 5.38% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Birla Sun Life Midcap Fund-Plan A through SIP for the past 5 years today you would have around Rs 7.84 lakhs.

How will Birla Sun Life Midcap Fund-Plan A 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 9% then you can expect top performing mutual funds to give you returns in excess of 15%. 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 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 Midcap Fund-Plan A  is 2.46%. 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 during 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 Midcap Plan A does not qualify for sec 80C ELSS benefits.

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