Fund Review: Birla Sun Life Top 100

Increasing uncertainty over the earnings growth due to host of macro-economic factors accentuate the importance of staying invested with large-sized companies. They are better equipped to deal with high volatility in demand given the strength of their balance sheet, dominant market share and better cash flows from operations in comparison with mid- and small-sized companies. For investors, it makes sense to stick with mutual funds focusing on large-cap companies. Among large-cap schemes, Birla Sun Life Top 100 should serve as a good investment option. Managed by Mahesh Patil, the scheme follows buy-and-hold strategy and dedicates a large part of its portfolio to large-sized companies. In the past three years, Birla Sun Life Top 100, a five-star rated scheme by Value Research, has not only beaten its benchmark Nifty 50 but also its peers.
In the past three-year and five-year periods, the scheme has delivered 14 per cent and 20 per cent returns while its benchmark has given 9 per cent and 14 per cent returns respectively. In the past six months, the scheme’s fund manager has followed ‘buy on dips’ strategy and bought well-established companies such as Dalmia Bharat, Voltas, Hindustan Zinc, ITC and Dabur — companies whose earnings growth is less likely to be volatile as compared to their mid and small-sized peers.