Fund Review: Aditya Birla Sun Life Frontline Equity

After two major disruptions in the form of demonetisation and implementation of the GST, a clear trend that has emerged is the gain in the marketshare by large-sized companies which dominate the organised part across sectors. It is quite evident that the large-sized companies would continue to clock superior returns due to increasing business, resulting from improved market share. This fact justifies investment in schemes which have singular focus on large-sized companies in their portfolio. Among them, Aditya Birla Sun Life Frontline Equity Fund has distinguished itself from its peers on the sheer strength of performing better than its peers in the industry.

In the past six months, the scheme’s fund manager Mahesh Patil, who has been managing the scheme for the past 13 years, has selected companies which fall under defensive and value themes. These are IOC and ONGC. The scheme has outperformed even its peers in the past ten years. In the past five-year and ten-year period, the scheme has given 15.7 per cent and 12.3 per cent returns, respectively, while its benchmark S& P BSE200 has given 13 per cent and 7 per cent returns, respectively, in the same period.