Latest news with #AdityaBirlaSunLifeBalancedAdvantageFund
Mint
13 hours ago
- Business
- Mint
Aditya Birla Sun Life Balanced Advantage Fund review 2025: Updated insights for investors
As retail investors in the country look for stability amid the ongoing market volatility in June 2025, the Aditya Birla Sun Life Balanced Advantage Fund (ABSL BAF) continues to draw admiration for its unique and dynamic asset allocation strategy. The objective of setting up this fund is to balance equity and debt exposure based on the prevailing market conditions, thus making it a potential investment option for investors seeking long term capital appreciation with moderate risk. This fund was launched on 25 April 2000. It is known as the Aditya Birla Sun Life Balanced Advantage Fund. It is jointly managed by Lovelish Solanki, Mohit Sharma and Harish Krishnan. The fund focuses on generating long term capital appreciation and income distribution by investing in a mix of equity, equity related instruments and fixed income securities. That is why investors should focus on proper asset allocation to make their investment journey more meaningful and rewarding. On the same issue, Harish Krishnan, Co-CIO and Head Equity, Aditya Birla Sun Life AMC believes that, 'Asset allocation is about having a disciplined framework to book profits when everything seems to be going great for an asset class and to increase allocation when margin of safety improves.' He further added that, "ABSL BAF has navigated the last 6 months with agility and discipline- from 38% in mid October 2024 to directional equity to around 70% by mid-March 2025, a period where pessimism was on the rise and conversely margin of safety improved. It is this dynamic asset allocation that helps protect the downside while participating in eventual upside of markets." The fund has an exposure of 69.82% in equities, with the remainder of 30.18% allocated to cash and debt instruments. For more details on the fund, investors can refer to the official fund page: Aditya Birla Sun Life Mutual Fund page. According to data from the fund's official website the NAV (Net Asset Value) for the Regular Plan Growth option stood at ₹ 104.81 as of 31st May 2025. Here is a quick snapshot of the funds returns across different time horizons: Period Return (%) 1 year 11.08% 3 years 14.48% 5 years 17.36% Since inception 9.83% Source: Aditya Birla Sun Life Mutual Fund Minimum investment : ₹ 100 is the minimum amount of investment. Further you can also invest money on a lump sum basis or through Systematic Investment Plan (SIP). : 100 is the minimum amount of investment. Further you can also invest money on a lump sum basis or through Systematic Investment Plan (SIP). Expense ratio : As of April 2025, the expense ratio of the fund is 1.79% for the Regular Plan. This ratio changes as per fund policies therefore refer to the official website for updates. : As of April 2025, the expense ratio of the fund is 1.79% for the Regular Plan. This ratio changes as per fund policies therefore refer to the official website for updates. Exit load : 0.25% if redeemed within 7 days; nil thereafter. : 0.25% if redeemed within 7 days; nil thereafter. Risk rating : Very High (as per SEBI's Riskometer). : Very High (as per SEBI's Riskometer). Benchmark index: CRISIL Hybrid 50+50 - Moderate Index. Note: The details, returns and features related to the fund, discussed above are illustrative only. For the updates, features, returns, terms and conditions refer to the official website of the fund. You are also advised to discuss your doubts with a certified financial advisor before investing in mutual funds. Hence, it is prudent to keep in mind that the ABSL Balanced Advantage Fund operates in a regulatory environment where market volatility is being shaped by RBI's monetary policies, global economic shift, interest rate trends and domestic economic indicators. The fund's dynamic method of rebalancing of equity and debt positions may help navigate these market fluctuations, economic downturns better than traditional fixed allocation funds. Still, being rated as a 'Very High' risk fund, it becomes essential for investors to carefully go through the fund profile and documents to assess their personal risk taking capacity and long term financial goals before investing. Furthermore, for updated information, asset mix, and downloadable factsheets, investors are advised to refer to the official ABSL Balanced Advantage Fund webpage. Disclaimer: Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. The information provided here is for general awareness and educational purposes only and does not constitute financial advice. Please consult your financial advisor before making any investment decisions.
Time of India
27-05-2025
- Business
- Time of India
Aditya Birla Sun Life Balanced Advantage Fund turns Rs 10,000 SIP to Rs 1.6 crore in 25 years
Aditya Birla Sun Life Balanced Advantage Fund has turned Rs 10,000 monthly SIP to more than Rs 1.6 crore in the last 25 years. That implies a compounded annual growth rate (CAGR) of 11.7% during the same time. The fund, launched on April 25, 2000, caters to investors seeking long-term growth potential and upside of equity, but at lower volatility levels. Aditya Birla Sun Life Balanced Advantage Fund balances the equity and fixed income exposure basis market valuation to generate a reasonable return with relatively lower volatility, according to a wealth creation study by the fund house. Also Read | Nifty up 13% from April's low. How should mutual fund investors alter their investment strategy? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trekking pants for mountain sports and adventure travel Trek Kit India Shop Now Undo The dynamic asset allocation model automatically reduces equity exposure at higher valuation levels and helps mitigate volatility in returns. Historically, the fund has offered lower drawdowns and faster recovery compared to broader markets. It aims for consistent downside protection while still capturing meaningful upside potential. Since 2015, the fund has generated nearly 80% of Nifty's return with an average net equity exposure of almost 52% while experiencing only 66% of Nifty's volatility. Over a three-year rolling period, the fund has delivered returns above 8% in more than 86% of instances over the last nine years Live Events 'The 25-year journey of Aditya Birla Sun Life Balanced Advantage Fund is not just a performance milestone, it is a testament to the dedication of our team and the enduring confidence of our investors. The endeavour is to provide peace of mind to an investor by dynamically adjusting the equity and fixed income exposure and aiming to provide reasonable returns with lower volatility,' said A. Balasubramanian, MD and CEO, Aditya Birla Sun Life AMC . 'The fund maintains a quality-biased portfolio and invests across sectors & market capitalisation to generate alpha. ABSLAMC is confident and committed to delivering a superior investment experience, and thanks all our investors and partners for their continued faith in bull as well as bear market phases,' he added. Also Read | An underrated solution, finding its due: Radhika Gupta reacts on tax-efficient options beyond equities The fund is jointly managed by Harish Krishnan, Lovelish Solanki and Mohit Sharma. It had assets under management of more than Rs 7,500 crore as of April 30, 2025. The regular plan of Aditya Birla Sun Life Balanced Advantage Fund has offered 9.77% CAGR since its inception, whereas the direct plan has offered 12.44% CAGR since its inception.
Time of India
19-05-2025
- Business
- Time of India
Best balanced advantage funds or dynamic asset allocation funds to invest in May 2025
Many mutual fund advisors have been recommending balanced advantage funds to new and inexperienced investors for a while now. These advisors believe that these schemes are ideally placed to take care of the current market conditions because of their dynamic portfolio. Advisors are also recommending these schemes to investors to park their lumpsum amounts. Balanced advantage funds invest in a mix of stocks, debt, and arbitrage opportunities. These funds decide their equity exposure depending on key market ratios or in-house parameters. They invest less in stocks when the market is very high or valuations are stretched. They invest more in equity when stocks are available at attractive valuations. In short, BAFs do the job of juggling equity exposure for investors. Also Read | Sensex @82,300: Should mutual fund investors alter their investment strategy? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Sure, these funds limit equity exposure based on valuations, but that doesn't make them totally safe. Don't be under the illusion that balanced advantage funds are a safe investment. In fact, many mutual fund distributors make such claims. However, don't be influenced by such talk. Any mutual fund scheme that invests in stocks can't be considered as safe. It also cannot avoid volatility and losses totally. So, invest in balanced advantage funds only if you can tolerate the risk of investing in stocks . Also, invest only if you have an investment horizon of at least five years. Is there anything else you should keep in mind while investing in these schemes? Yes, you should make sure the scheme is practising what it claims to be. Make sure the scheme is rebalancing the portfolio in a timely manner. For example, there are schemes that invest heavily in stocks even when the market is at a higher level or at expensive valuations. You have to make sure that you don't get into such schemes. Live Events If you are planning to invest in balanced advantage schemes, here are our recommended schemes you can consider investing. There are no changes in the list this month. Follow our monthly updates to know how your schemes performed in the previous month. Also Read | These mutual funds added 13 new smallcap stocks to their portfolios in April Best balanced advantage funds to invest in May 2025: Edelweiss Balanced Advantage Fund ICICI Prudential Balanced Advantage Fund Aditya Birla Sun Life Balanced Advantage Fund has employed the following parameters for shortlisting the hybrid mutual fund schemes. 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i) When H = 0.5, the series of return is said to be a geometric Brownian time series. These type of time series is difficult to forecast. ii) When H is less than 0.5, the series is said to be mean reverting. iii) When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X = Returns below zero Y = Sum of all squares of X Z = Y/number of days taken for computing the ratio Downside risk = Square root of Z 4. Outperformance i) Equity portion: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market. Average returns generated by the MF Scheme = [Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate} ii) Debt portion: Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund. 5. Asset size: For Hybrid funds, the threshold asset size is Rs 50 crore
