The Birla Sun Life Frontline Equity Fund is an open-ended fund that invests in approximately the same proportions as the sectors in the S&P BSE 200 Index, giving each sector its due weightage and keeping your investments diversified. The BSE 200 consists of the top 200 companies on the Bombay Stock Exchange based on their market capitalization. The fund managers may invest in companies not on the BSE 200 list, but which are heading there and are growing faster than companies already in the list. The discipline inherent in the Frontline Equity Fund helps avoid concentration risk and gives stability to your portfolio by limiting overdependence on any one sector.
- The Birla Sun Life Frontline Equity Fund has been in place since 30th August, 2002.
- The fund is managed by Mahesh Patil, who lends to the fund his considerable experience of 23 years.
- The minimum amount for the first investment is Rs 5,000 (plus multiples of Rs 1). For any additional investments, the minimum amount is Rs 1,000 (plus multiples of Rs 1).
- If you choose to invest via the systematic investment plan or SIP route, the minimum investment is Rs 1,000. With a SIP, you don’t need to time the market; since you are investing an equal amount each month, your cost per unit averages out over time. A SIP enables you to take advantage of equity-like returns on a small outlay of money.
- There is no entry load. The exit load is 1% if you redeem your investment within 365 days from the date of allotment of units in the fund.
- The Frontline Equity Fund offers a growth and a dividend option. You can choose to earn a regular income from your fund either by choosing the dividend option, or by setting up a systematic withdrawal plan (SWP) with the growth option. The SWP gives you the option of choosing the frequency and amount of your income.
- The Birla Sun Life Frontline Equity Fund has generated a compound annual growth rate (CAGR) of 24.86% since inception, compared to the CAGR of 19.44% generated by the S&P BSE 200 Index over the same period.
- If you had invested Rs 5,000 via the SIP option in the Frontline Equity Fund, you would have earned a CAGR of 21.09% since inception, and a CAGR of 19.64% over the last five years. Compare this to the respective CAGR of 15.10% and 13.77% given by the S&P BSE 200 Index.