103174  |  INF209K01BR9  |  5 star  |  Silver

NAV

$ 207.21

1-Day Total Return

-0.90
%
INR | NAV as of 8/21/2017 9:30:00 AM | 1-Day Return as of 21 Aug 2017

TTM Yield

0.00%

Load

Multiple

Total Assets

187.9 bil

Expenses

2.27%

Fee Level

--

Turnover

132%

Status

Open

Min. Inv.

1,000

30-Day SEC Yield

--

Category

Large-Cap

Investment Style

Large Growth
Author
Morningstar's Take | 25/12/2016
by Kavitha Krishnan

A skilled manager and his well-executed investment approach make this fund a compelling choice for investors.

Manager Mahesh Patil is evidently mindful of the benchmark S&P BSE 200 Index while investing. For instance, he invests largely in stocks chosen from the index. Also, he loosely aligns the portfolio’s sector weightings with those of the index. But that has not resulted in a benchmarklike showing. Under his watch (November 2005-November 2016), the fund (17.22% annualised) has bested 96% of its peers. Year on year, too, Patil has ensured that the fund has delivered consistent returns.

Its success can be attributed in no small measure to Patil’s deftly implemented investment approach. His stock-picking has been impressive. A growth bias is apparent as Patil focuses on factors such as ROCE, ROE, and earnings growth potential. Despite the benchmark-awareness, Patil is no closet indexer, as he is willing to deviate substantially from index weightings in individual holdings.

Patil has also used his understanding of market movements and stock price points skilfully. Tactical plays and a buy/sell pattern within long-held holdings are integral to the approach. But some caveats are in order. In an upturn that is not broad-based--in other words, when some sectors gain significantly more than others--the benchmark-consciousness may cause the fund to underperform peers that invest in an unconstrained manner. Also, tactical plays add an element of timing risk.

Then again, evidently Patil is at ease with the investment approach. He has plied it with skill across market conditions, and we draw extra comfort from his stock-picking prowess. Our confidence in the fund’s ability to deliver pleasing results over a market cycle has grown, and we reiterate our Morningstar Analyst Rating of Silver.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

The manager uses his qualitative overlay effectively despite keeping within the fund’s stated limits.

People

Mahesh Patil is a skilled and experienced manager. His long tenure at the helm is a positive.

Parent

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

Process

Plying a benchmark-aligned process, the manager scouts for companies with good growth prospects.

Performance

The fund has delivered a solid showing on the risk/return front over the long haul.

Price

The fund’s price is lower than that of the median offering from the 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