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1 March 2023 6:12 AM GMT
Summary
The fund has the majority of its money invested in FMCG, Financial, Services, Automobile, Consumer Durable sectors.
Objectives
Aditya Birla Sun Life India GenNext Direct Fund-Growth is a Thematic-Consumption mutual fund scheme from Aditya Birla Sun Life Mutual Fund. The scheme aims to invest in equity/ equity related instruments of companies that are expected to benefit from the rising consumption patterns in India, which in turn is getting fuelled by high disposable incomes of the young generation (Generation Next).
Fund Highlights
This fund has been in existence for 9 yrs, having been launched on 01/01/2013.
The fund-Growth has ₹2,563 Crores worth of assets under management (AUM) as on 31/12/2021 and is medium-sized fund of its category.
The fund has an expense ratio of 1.02%, which is close to what most other Thematic-Consumption funds charge.
It is benchmarked against NIFTY 50 Index.
The expense ratio of the fund is 2.22% for Regular plan as on Oct 31, 2021. Exit load of 1% if redeemed within 90 days.
Minimum investment required is Rs 1000 and minimum additional investment is Rs 1000. Minimum SIP investment is Rs 1000.
Returns
Aditya Birla Sun Life India GenNext Direct Fund-Growth returns of last 1-year are 27.06%. Since launch, it has delivered 18.27% average annual returns. The fund has doubled the money invested in it every 2 yrs.
Its trailing returns over different time periods are: 38.11% (1yr), 19.9% (3yr), 18.15% (5yr) and 17.31% (since launch). Whereas, Category returns for the same time duration are: 39.75% (1yr), 18.54% (3yr) and 16.78% (5yr).
Sector and stocks wise exposure
The fund has the majority of its money invested in FMCG, Financial, Services, Automobile, Consumer Durable sectors. It has taken less exposure in FMCG, Financial sectors compared to other funds in the category.
The fund's top 5 holdings are in ICICI Bank Ltd., HDFC Bank Ltd., Bharti Airtel Ltd., Hindustan Unilever Ltd., ITC Ltd..
While the top 10 equity holdings constitute around 32.98% of the assets, the top 3 sectors constitute around 61.93% of the assets.
The fund largely follows a Growth oriented style of investing and invests across market capitalisations - around 62.43% in giant & large cap companies, 30.64% in mid cap and 6.93% in small cap companies.
Tax Implications
1. Gains are taxed at a rate of 15% (Short-term Capital Gain Tax - STCG) if units are redeemed within 1 year of investment.
2. For units redeemed after 1 year of investment, gains of upto Rs. 1 lakh accruing from those units in a financial year shall be exempted from tax.
3. Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long-term Capital Gain Tax - LTCG).
4. For Dividend Distribution Tax, the dividend income from this fund will get added to the income of an investor and taxed according to his/her respective tax slabs.
5. Also, for dividend income in excess of Rs 5,000 in a financial year; the fund house shall deduct a TDS of 10% on such income.
Fund Manager
The Aditya Birla Sun Life India GenNext Fund is managed by Chanchal Khandelwal (Since Aug 26, 2015).
Expert Comment
Aditya Birla Sun Life India GenNext Direct Fund-Growth scheme's ability to deliver returns consistently is in-line with most funds of its category. Its ability to control losses in a falling market is average.
The suggested investment horizon of investing into Aditya Birla Sun Life India GenNext Fund is >3 years. The suggested investment horizon is the minimum time required for holding investments in the fund to reduce its downside risk and ensure that the returns become more predictable.
