How will ABSL Focused Equity Fund Help You in the Market Meltdown?

In the current market situations, investors are looking for staying invested in the schemes that have focused investment approach in the large-cap space and the one which can deal with the heightened volatility prevailing in the market is Aditya Birla Sun Life Focused Fund. The fund is investing in such large-cap companies which have a long operational history and experienced different demand-supply as well as market cycles. The fund by investing in such companies can manage the downside of the market much better than mid and small-cap category mutual funds. So, let’s see how the fund can save you from the market meltdown and deliver you good returns in the long run. 1. Focused Large-Cap Investment Approach The fund is investing in 28 companies currently and keeps a maximum of 30 companies in its portfolio at all the market cycles. ABSL Focused Equity Fund invests in the companies with a long-term sustainable competitive advantage and growth potential. This leads the fund to change its portfolio according to NIFTY 50 and top 30 companies of it. As the top 30 companies change their places according to the quarterly profits, a few companies enter the top 30 and the prevailing companies which face losses exit. This provides the investors a feel of security, as in the possibility of the market fall, the large-cap companies deal with volatility in a better way as compared to mid and small-cap companies. 2. Growth and Value Investing Aditya Birla Sun Life Focused Scheme is following the combination of growth and value style of investment. This helps the fund to provide good returns in both the cycles, whether it is growth or it is value investing cycle. This helps the fund to provide the annualised returns of 14.65% in the past five years, 13.82% in the past seven years, and 7.25% in ten years, outperforming the benchmark as well as peers. Besides this, it has consistently out-stared the benchmark and category in the calendar years’ returns. It has also managed to cap the losses in the bearish markets of 2008, 2011, and 2015. 3. Investing in MNCs The fund manager of ABSL Focused Equity Fund G, Mr Mahel Patil is also investing its corpus in the multinational companies. This is because they have faced the markets of various countries and have a track record of staying stable in all market conditions. They enjoy higher valuations in the market and help the fund in volatile market conditions. The fund management team selects those companies in its portfolio which have premium management quality, consistent growth, strong finances, access to latest technology, and prudent accounting policies. 4. Contrarian Bets Birla Sun Life Focused Equity Fund has increased the exposure to contrarian bets in its portfolio from the past few months because they help the fund in good earnings. For instance, the stocks of energy may favour the market in the long run and this can be visible in the upcoming quarters. Besides this, the fund has placed its assets well in the giant and large-cap companies, as well as has an investment of approximately 15% in the mid-cap companies which are in a league of becoming large-cap soon. It has also invested its 10% of corpus in debt and money market securities to keep the mandate liquidity in the portfolio. All the above-discussed points have helped ABSL Focused Equity Fund- Regular Plan in outperforming its benchmark as well as peers. It has managed to generate positive returns across the timeline and also outperformed the index and other funds of the category. Though, it is following a compact investment strategy which may affect if the assets under management of the fund increase. However, if you are a long-term investor and have the investment horizon of 5 years or more and a moderate to moderately high-risk appetite, then you can invest in the fund via both SIP or lumpsum mode. Afraid of the market volatility and want to invest in Aditya Birla Sun Life Focused Equity Fund? Read the article which is providing the major points on how the fund can save you from the market meltdown.