Birla Sun Life MF launches Birla Sun Life Long Term Advantage Fund - Series I
9th April, 2007
Birla Sun Life Mutual Fund, one of India's leading mutual funds, today announced the launch of Birla Sun Life Long Term Advantage Fund - Series 1 (BSLAF - Series 1) .
BSLAF - Series 1 is a three-year, closed-end equity fund which aims at generating consistent long-term capital appreciation by investing predominantly in equity and equity-related securities of small and mid cap companies. The performance of the fund would be benchmarked against the BSE 500 Index.
"There are a lot of opportunities in the small and mid cap segment of our markets. A fund dedicated to this segment would have the potential of generating superior returns over the next three years," said Mr. Mukul Gupta, CEO, Birla Sunlife Mutual Fund. "Mid and small cap companies now quote at a substantial discount to the large cap companies and hence offer better risk-to-reward/investment opportunities. The closed-end nature of the fund allows fund managers the flexibility to focus on long-term wealth creation, without unduly worrying about short-term liquidity concerns," he said.
This fund will invest in a portfolio of attractively priced small and mid cap stocks that are expected to post attractive growth in the next few years. BSLAF - Series 1, through active management, seeks to construct a portfolio of high-growth stocks with an endeavour to outperform its benchmark index.
When one is invested in a long-term three-year closed-end fund, the intervening volatility of the stock markets does not impact as long as the markets perform over the three-year horizon. Moreover, in an upward trending market, investing in a closed-end fund prevents one from encashing too early and thereby miss the larger rally.
Investing in equities has always proved beneficial in the long term. Analysis has also proved that the probabilities of earning superior returns are higher for long-term equity investments.
An investment for any three-year period in the last 27 years of the Sensex's existence has generated positive returns, 80 per cent of the times. On the other hand, investments for a one-year period would have generated positive return only 63 per cent of the times.With a large team of equity analysts and fund managers and long experience of over 12 years in equity funds management, Birla Mutual Fund is ideally placed to manage a long term closed-end equity fund.
About Birla Sun Life Asset Management Company Limited Birla Sun Life Asset Management Company Ltd., since its inception in October 1994, has emerged as one of India's leading AMCs with over Rs.19,300 crore of assets under management and an investor base of over 11 lakh (as on 31 March 2007). It offers a range of comprehensive investment options, which includes diversified and sector specific equity schemes, hybrid funds and a wide range of debt and treasury products.
For more information please contact:
Mr. Raghvendra Nath
Vice president, marketing and strategy
Tel: 91-22-6692 8058 (Direct), 6692 8000 (Board)