Mutual Funds

Aditya Birla Sun Life Corporate Bond Fund

Aditya Birla Corporate Bond Fund Summary

Launched on 3rd March 1997, is the open ended debt scheme that seeks to offer an investment in a portfolio comprising of corporate debt securities with 80% investment in highest rated corporate bonds (AA+ & above). The investment objective of the scheme is to generate optimal returns with high liquidity through active management of the portfolio by investing in High Quality Debt and Money Market Instruments.

Portfolio Diversification (as on 31st Oct, 2020)

Assets Allocation
Debt95.06%
Net Cash and Cash Equivalent4.94%
Security Type% Weight
Government Bond18.63%
State Government Bond10.49%
Corporate Bonds65.94%
Cash and Cash Equivalents4.94%
Rating Allocation
AAA Equivalent62.95%
Sovereign29.12%
AA Equivalent2.99%

Top 10 Holdings (as on 31st Oct, 2020)

Government Bond18.63%
State Government bond10.49%
REC Limited7.95%
Reliance Industries Limited7.67%
Power Finance Corporation Limited6.37%
Housing Development Finance Corporation Limited5.30%
Larsen & Toubro Limited4.11%
National Bank For Agriculture and Rural Development3.90%
Sikka Ports and Terminals Limited3.64%
LIC Housing Finance Limited2.41%

Fund Performance

Performance (as on 31st Oct, 2020)

 Period Fund Return Benchmark Return
 1 Y11.60%11.42%
 3 Y9.13% 8.73%
 5 Y 8.98% 8.77%
 Since Inception 9.44% N/A

Scheme Strategy

  • The Scheme proposes to invest in a diversified set of fixed income securities and money market instruments with the aim of generating returns commensurate with a low risk strategy.
  • The aim of the Investment Manager will be to allocate the assets of the Scheme amongst various fixed income instruments (debt / money market) across maturities and ratings with the objective of optimizing returns.
  • The actual percentage of investment in various fixed income instruments from time to time will be decided based on the prevailing macro-economic environment (including interest rates and inflation), market conditions, general liquidity, and fund manager views.

Fund Management

The Aditya Birla Sun Life Corporate Bond Fund has been managed Kaustubh Gupta & Mr.  Maneesh Dangi since August 1, 2017. Kaustubh brings with him 14 years of extensive investment experience having worked in various capacities of treasury finance, liquidity management and now fund management. Prior to joining ABSLAMC in 2009, Kaustubh worked with ICICI Bank for 5 year in the Asset Liability Management team. He is a Chartered Account and CFA (Level 2) by qualification. Maneesh joined Team BSLAMC in 2006 from Pioneer Investcorp, an integrated financial services company where he led their Fixed Income consultancy and Merchant Banking division. With over 13 years of investment experience, Maneesh has the distinction of managing the largest AUM (Asset under Management) in the MF industry in India across asset classes.

Maneesh is a management graduate and FRM(GARP).

Important Measures (As on 31st Oct, 2020)

ComponentValue
Standard deviation1.09
Yield to Maturity5.21%
Modified Duration2.72Years
Average Maturity3.46 Years

Benchmark Index: NIFTY Corporate Bond Index

Net AUM: ₹ 23394.66 crores

Expense Ratio: Regular plan- 0.44% direct plan- 0.29%

Entry Load: N/A

Exit Load: N/A

NAV (in Rs)*As per fund fact sheet 30th October, 2020

Direct plan85.35

Investment Risk: Moderately low

Minimum investment Amount: ₹ 100

Minimum SIP Amount: ₹ 100

Scheme suitable only if you are an investor-

  1. Who seek to generate income with capital growth over short term.
  2. Whose investment preference is in debt and money market instruments and want to go for less riskier options than equity.

Tarrakki’s View

Investors having an investment horizon around 3 years can invest in ABSL corporate bond fund. This fund takes minimal credit risk compared to its peers therefore performed better than its peers during the worst times. We are quite comfortable with its large AUM size which helps in case of any redemption pressure. This fund has outperformed its benchmark since inception and is a great alternative to a bank fixed deposit. This fund can be a higher-return alternative to fixed deposits in exchange for a little higher risk, or part of debt allocations of long-
term portfolios.

About AMC

Aditya Birla Sun life mutual funds is a a joint venture company co-sponsored by the Indian company Aditya Birla capital limited and Canada based financial service company, Sun Life AMC investments, Inc.

Headquartered in Mumbai it was previously named Birla Sun Life asset management company limited .It was established in 1994 and has successfully completed 25 years in the Indian financial landscape. Both the parent companies are the and Sun Life financial Inc., are significant financial companies with a rich legacy of wealth creation and management. Aditya Birla group is the third largest business conglomerate in India, gross revenue in excess of $41 billion.

Sun Life on the other hand is one of the largest Life insurance providers in the world with investment management as there were other area of expertise. It ranks 236th on the Fortune 500list.

Address: Aditya Birla Sun Life AMC Limited, One India Bulls Centre, Tower 1, 17th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai, Maharashtra, 400013

Phone No: 1800-270-7000

Website: mutualfund.adityabirlacapital.com

By Tarrakki

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