Birla Sun Life Pure Value Fund

Birla Sunlife Pure Value Fund is managed by Mr. Nishit Dholakia. The scheme seeks to generate consistent long-term capital appreciation by investing predominantly in equity and equity related securities by following value investing strategy i.e. buying into stocks that are trading for less than their intrinsic value - stocks that the market is undervaluing. New investors can safely skip this fund. If you have already invested in this scheme, keep a close watch on its perfromance.

Where does Birla Sunlife Pure Value Fund invest your money?

Birla Sunlife Pure Value Fund is a mid cap fund which means it would invest your money in stocks of medium and small cap companies. Mid Cap and small cap companies tend to give kicker returns while large cap companies tend to be stable. It has 19.99% allocation to large cap companies, 49.84% allocation to midcap companies and around 28.86% allocation to small cap companies.

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
How has Birla Sunlife Pure Value Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in March 2008, your value of investments would be around Rs 1.71 lakhs. The performance has been similar to other funds in this category. The fund has been giving around 10.76% returns for those who have stayed invested since last five years.

Assume you had invested Rs 10,000 every month in Birla Sunlife Pure Value Fund through SIP for 5 years today you would have around Rs 8.03 lakhs.

How will Birla Sunlife Pure Value 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 follow 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-sized 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.

How much to invest?

Minimum one time investment is Rs 5,000. Do not make Birla Sunlife Pure Value 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 Sunlife Pure Value 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
Not Recommended
Our recommendation for existing investment
When to exit?

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

How frequently you need to monitor 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 quarter. Look out for news and developments that can affect the sector as a whole.

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.

An exit load of 1% is charged if units are sold within a year from the date of allotment. No exit load applies for units withdrawn post one year. Expense ratio of Birla Sunlife Pure Value Fund is 2.98%. 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.

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