Why BSL Frontline Equity is a good mutual fund investmemt
The fund has outpaced its benchmark by 5% annually over past 5 years.
FUND FACTS
INCEPTION: August 2002
CATEGORY: Equity: Large and Mid Cap
TYPE: Open-ended
AUM: Rs 5038.74 crore
BENCHMARK INDEX: S&P BSE 200
WHAT IT COSTS
NAV: Rs 137.84(G), Rs 21.54(D)
MIN INVESTMENT: Rs 5000
MIN SIP AMOUNT: Rs 1000
EXPENSE RATIO: 2.17% (as on 31 March 2014)
EXIT LOAD: 1% if redeemed within 365 days
WHY INVEST IN IT?
The fund house has chosen to define the strategy for this fund as a variation on the Bombay Stock Exchange (BSE) 200 benchmark. It says that the fund would aim for the same sector weights as the index but with a different stock selection within those sectors. Frontline hasn't underperformed the benchmark for ten years now. Whether it was a terrible year like 2008, or great ones like 2006, 2007 or 2009, this fund always either rises more than the benchmark returns or falls less. The result: an excellent relative performance. While the gains are impressive, it's the consistency of the lead over the benchmark that proves that the fund has proven its strategic theory.
MEET THE FUND MANAGER
Mahesh Patil has over 20 years of experience in fund management, equity research and corporate finance. Prior to joining Birla Sun Life Asset Management Company, he has worked with Reliance Infocom Ltd. in Business Strategy.
(Data and analysis of the fund have been sourced from Value Research)
