Multibagger mutual fund: This thematic fund has delivered 100 per cent return in just one year!

A lumpsum investment of Rs 1,00,000 in this fund would have turned to Rs 2,05,570 in just a year.

In the bustling landscape of mutual fund investments, the recent surge in Systematic Investment Plan (SIP) contributions paints a vivid picture of investor enthusiasm. The Association of Mutual Funds in India (AMFI) recently unveiled data showcasing a remarkable uptick, with SIP contributions soaring to a fresh all-time high of Rs 18,838.33 crore in January 2024. This figure marks a significant leap from Rs 17,610 crore recorded in December 2023 and Rs 13,856 crore in January 2023, reflecting a palpable uptrend in investor participation within the market.

Of particular interest amid this flourishing landscape is the notable influx of funds into thematic and sectoral investment avenues. In January 2024 alone, approximately Rs 4,805 crore flowed into these specialized funds, underscoring investors' growing appetite for focused strategies. Moreover, the aggregated net assets under management (AUM) as of January 31, 2024, stood at an impressive Rs 2,71,142 crore, compared to Rs 1,67,666 crore recorded on the same date a year prior.

Amidst this vibrant backdrop of investment fervor, it becomes compelling to explore a standout performer, a thematic/sectoral fund that has not only captured investor attention but has also delivered remarkable returns over the past year. Enter the Aditya Birla Sun Life PSU Equity Fund Direct - Growth, an Equity mutual fund scheme meticulously crafted by Aditya Birla Sun Life Mutual Fund. Managed by the astute Dhaval Gala, this fund, since its inception, has exemplified excellence in wealth creation.

With an AUM towering at Rs 2,678.68 crore, the Aditya Birla Sun Life PSU Equity Fund- Direct Plan- Growth has carved a niche for itself by delivering multibagger returns. Astonishingly, it boasts an impressive 100.06 per cent return over the past year, reaffirming its prowess in navigating market dynamics. Its performance over the last three years is equally stellar, clocking in at 214.15 per cent, showcasing consistency and resilience. Since its inception, the fund has yielded an impressive 249.15 per cent return, a testament to its robust investment strategy.

A lumpsum investment of Rs 1,00,000 in this fund would have turned to Rs 2,05,570 in just a year.

Investment in this scheme is accessible to all, with a minimum SIP amount set at Rs 500, making it inclusive and appealing to a broad spectrum of investors. Delving deeper into its asset allocation, as of January 31, 2024, the fund has strategically allocated 93.43 per cent of its assets in equity, with the remaining 6.57 per cent parked in cash and cash equivalents.

The portfolio composition reflects a balanced approach, with allocations spanning across market segments. Notably, 39.86 per cent is attributed to Giant companies, followed by 31.03 per cent in Large-Cap, 27.43 per cent in Mid-Cap, and 1.68 per cent in Small-Cap companies, showcasing a well-diversified stance. The average market capitalization of its holdings stands at an impressive Rs 1,03,795 crore, further underscoring its investment acumen.

Disclaimer: The article is for informational purposes only and not investment advice