Points to consider:-
* Birla SunLife Asset Management Company has launched a five year closed-end equity scheme “Birla Long Term Advantage Fund (BLTAF)” with an objective of providing for long-term capital appreciation, by investing predominantly in a diversified portfolio of equity and equity related securities.
* BLTAF will invest across market capitalizations. BLTAF will invest in diversified portfolio of large, mid and small cap companies.
* BLTAF aims to capitalize on expansion plans of companies and the long term good performance of Birla Mutual Fund.
* Birla Long Term Advantage Fund would invest in a portfolio of reasonably priced stocks that are expected to post attractive growth in the next 3-5 years' horizon.
* The corpus of the Scheme will be primarily invested in diversified equity and equity related securities of the companies that have a potential to appreciate in the long run.
Analyzing the NFO-The Fund
*Birla Long Term Advantage Fund is 5 year close-ended pure diversified fund. It would seek to benefit from investing in under priced opportunities in all segments of the market.
*The Fund would take advantage of derivatives to create hedges during volatile times. Derivatives, when used for hedging, can aid in reducing the volatility of the portfolio. Therefore investors can benefit from the same levels of return but at reduced levels of risk (as measured by volatility).
*BLTAF aims to focus on the science of building capital through patient disciplined medium term investing in quality business.
*BLTAF will invest 80-100% of its corpus in Equity and Equity related securities and remaining 0-20% in Fixed Income Securities.
Equity Investment Scenario & future with BLTAF
*Investment scenario is looking good with economy witnessing a high GDP growth of over 7% in the last few years and the same trend is expected in coming years.
*Though there are concerns over rising interest rate, inflation, current themes such as capex, domestic consumptions and outsourcing is unlikely to affect in a major way.
*Investment in capacity creation is taking place, which may deliver value over the next few years. BLTAF will capitalize on this opportunity to deliver better returns.
Our View:
There are number of advantages applying for BLTAF:-
Equity investment scenario looking good with an Indian economy expected to grow at good pace.
The Fund will select stocks of companies that have demonstrated a potential ability to grow at a reasonable rate for the long term.
Since the Fund is closed ended for 5 years the Fund Manager won’t have any redemption pressure & the fund comes with an added advantage of Derivatives, which prevents capital erosion of the fund so investors can allocate some part of their Portfolio to this Diversified Equity Fund. We recommend investing in this fund with 5 years investment horizon.
* Birla SunLife Asset Management Company has launched a five year closed-end equity scheme “Birla Long Term Advantage Fund (BLTAF)” with an objective of providing for long-term capital appreciation, by investing predominantly in a diversified portfolio of equity and equity related securities.
* BLTAF will invest across market capitalizations. BLTAF will invest in diversified portfolio of large, mid and small cap companies.
* BLTAF aims to capitalize on expansion plans of companies and the long term good performance of Birla Mutual Fund.
* Birla Long Term Advantage Fund would invest in a portfolio of reasonably priced stocks that are expected to post attractive growth in the next 3-5 years' horizon.
* The corpus of the Scheme will be primarily invested in diversified equity and equity related securities of the companies that have a potential to appreciate in the long run.
Analyzing the NFO-The Fund
- Long Term Advantage Fund is from the fund house, which is well known for creating value for the investors in this long period.
- Birla MFs equity schemes have generated better returns compare to Benchmark returns. Top performing Birla MF Equity scheme has given compounded annualized returns of 45.76% over 5 year. Whereas Benchmark had given 26.62% returns, Birla
- MF equity schemes have outperformed the benchmark on the 5 year basis.
*Birla Long Term Advantage Fund is 5 year close-ended pure diversified fund. It would seek to benefit from investing in under priced opportunities in all segments of the market.
*The Fund would take advantage of derivatives to create hedges during volatile times. Derivatives, when used for hedging, can aid in reducing the volatility of the portfolio. Therefore investors can benefit from the same levels of return but at reduced levels of risk (as measured by volatility).
*BLTAF aims to focus on the science of building capital through patient disciplined medium term investing in quality business.
*BLTAF will invest 80-100% of its corpus in Equity and Equity related securities and remaining 0-20% in Fixed Income Securities.
Equity Investment Scenario & future with BLTAF
*Investment scenario is looking good with economy witnessing a high GDP growth of over 7% in the last few years and the same trend is expected in coming years.
*Though there are concerns over rising interest rate, inflation, current themes such as capex, domestic consumptions and outsourcing is unlikely to affect in a major way.
*Investment in capacity creation is taking place, which may deliver value over the next few years. BLTAF will capitalize on this opportunity to deliver better returns.
Our View:
There are number of advantages applying for BLTAF:-
Equity investment scenario looking good with an Indian economy expected to grow at good pace.
The Fund will select stocks of companies that have demonstrated a potential ability to grow at a reasonable rate for the long term.
Since the Fund is closed ended for 5 years the Fund Manager won’t have any redemption pressure & the fund comes with an added advantage of Derivatives, which prevents capital erosion of the fund so investors can allocate some part of their Portfolio to this Diversified Equity Fund. We recommend investing in this fund with 5 years investment horizon.
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