103166  |  INF209K01AJ8  |  4 star  |  Bronze

NAV

$ 717.05

1-Day Total Return

0.62
%
INR | NAV as of 18/12/2017 10:30:00 | 1-Day Return as of 18 Dec 2017

TTM Yield

0.00%

Load

Multiple

Total Assets

79.6 bil

Expenses

2.38%

Fee Level

--

Turnover

437%

Status

Open

Min. Inv.

1,000

30-Day SEC Yield

--

Category

Flexicap

Investment Style

Large Growth
Author
Morningstar's Take | 27/12/2016
by Kavitha Krishnan

Despite the fact that Anil Shah has managed this fund for a relatively short term, his execution of the strategy stands out and is reflected in its performance. Our conviction in his ability to remain true to the fund’s mandate and the increased stability on the equity team drives our confidence in this fund.

Shah has managed the fund since he joined the company in October 2012. While this is Shah's first stint at running a public mutual fund, the fund has managed to deliver positive and consistent returns under his leadership. Shah’s portfolio is based on an investment style that draws more from the top-down approach. He will focus on sectors that he believes are attractively valued with growth prospects. Although stock selection is based on fundamental research, the manager will not invest in sectors that he has a negative view on. Shah’s portfolio typically maintains the small/mid-cap allocation between 20% and 40%.

While picking stocks, Shah considers a combination of absolute and relative valuations. He seeks to invest in companies with competitive advantages such as technology prowess and market share. Shah is willing to be flexible with valuations, so long as he sees earnings visibility. He is not averse to taking cash calls if he turns too negative on the macroeconomic environment. It must be noted that taking cash calls entails timing risk.

Overall, the investment process seems like a commonplace growth-oriented one that combines top-down and bottom-up approaches. However, Shah’s skill in being able to allocate across market caps, sectors, and stocks efficiently stands out. Since taking over the fund, Shah has been able to execute the strategy well. Under his watch through November 2016, the fund has delivered 20.42%, beating 86% of the flexicap Morningstar Category peers and outperforming the category average, which returned 16.33%. Although it is a short period, we view Shah’s performance in positive light and would like to monitor the fund over the long haul before we develop an even higher level of confidence. For now, we upgrade the fund’s Morningstar Analyst Rating to Bronze.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

Shah runs a multi-cap portfolio that can deviate significantly relative to the benchmark.

People

Anil Shah has been able to execute this strategy with finesse so far.

Parent

We think Birla Sun Life AMC has been witnessing a lot of traction and stands out in many aspects.

Process

Shah plies a top-down approach, seeking reasonably valued sectors offering good growth prospects.

Performance

The fund has remained an above-average performer under Shah’s leadership.

Price

The fund’s price is lower than the median offering from the flexicap category.

Important Disclosures

Unless stated otherwise, this report was prepared by the person(s) noted in their capacity as Manager Research Analysts (i.e., fund analysts) employed by Morningstar, Inc., or one of its affiliates. It has not been made available to the issuer prior to publication.

Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Manager Research Analysts’ expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are not guarantees nor should they be viewed as an assessment of a fund’s or the fund’s underlying securities’ creditworthiness.

No material interests are held by Morningstar or the Manager Research Analyst in the financial products that are the subject of the research reports or the product issuer. Regarding Morningstar’s conflicts of interest: 1) Manager Research Analysts’ compensation is derived from Morningstar’s overall earnings and consists of salary, bonus and in some cases restricted stock; however, Manager Research Analysts are neither allowed to participate directly or try to influence Morningstar’s investment management group’s business arrangements nor allow employees from the investment management group to participate or influence the analysis or opinion prepared by them. Further information on Morningstar’s Code of Ethics policies is available from http://corporate.morningstar.com/us/asp/subject.aspx?xmlfile=540.xml

Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information contained herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without written permission.

For Recipients in India: Research on securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (“Investment Research”) is prepared by Morningstar Investment Adviser India Private Limited, which is registered with the Securities and Exchange Board of India. Your access to the Investment Research does not establish an advisory relationship with Morningstar Investment Adviser India. You should seek the advice of a financial professional before making an investment decision to ensure, among other things, that the security is suitable based on your particular needs and circumstances.

For Registered users only indicates the feature is available for Registered users only.
Top
Mutual Fund Tools
Feedback