With the equity markets scaling new peaks, there is likely to be increased volatility in the short to medium horizon. Investors seeking solutions that aim to provide reasonable returns even in volatile markets and decent participation in bullish markets. In such challenging times, we recommend investing in BSL Balanced Advantage Fund as it will help investors through this volatile phase in equity markets too while seeking to provide stable compounding over a longer period.
BSL Balanced Advantage Fund Portfolio Update:
The portfolio (as of July 2017) is diversified across sectors and well positioned to benefit from volatility and generate reasonable returns over medium to long term. The portfolio is currently focusses on sectors like;
§ Banking & Financials – Prefer Pvt. Banks, Selective Corporate lenders & NBFCs with growth outlook and profitability
§ Consumer Non-Durables/Auto – 7th pay commission pay outs, government focus to double rural income, good monsoon all this augur well for the sectors
§ Oil & Gas – Strong refining margins & accomodative government policy bodes well for the sector
§ Metals – Supply demand situation improving due to supply rationalization
On fixed income side the fund has taken an exposure of around 17% to high quality corporate debt which offers attractive yields.
The net equity exposure for the fund as of July 2017 was 38.84% and the AUM size with 1900+ crores.
Aditya Birla SunLife Balanced Advantage Fund Performance Update:
§ Dynamic asset allocation strategy has helped deliver consistently over medium to long term
§ The fund delivered 6.5% vis-a-vis market (Nifty 50) posting around 11.5% returns over last six months period, the under performance in the
short term over the broader market and its peers was largely contributed due to conservative Net equity exposure in the portfolio
§ The average net equity exposure in the portfolio over the same period has been sub 40% levels, thereby avoiding the volatility that markets
have seen off late