Performance review: Aditya Birla Sun Life Frontline Equity Fund

Aditya Birla Sun Life Asset Management Company (AMC) came with its large-cap fund offering in August 2002. Initially, this fund was benchmarked against the S&P BSE 200. However, post the mutual fund rationalisation by the Securities & Exchange Board of India (SEBI), it changed its benchmark index to Nifty 50. Historically, this fund has performed well but in recent times, it has lost its sheen. In this article, we would be reviewing the performance of Aditya Birla Sun Life Frontline Equity Fund.

Source: Value Research

Source: Value Research

Here, in the above two graphs, we have split the performance of the fund into two periods: one from December 2002 to November 2010 and the other from December 2010 to November 25, 2020. Having said, the fund has successfully outperformed S&P BSE 100 TRI. We have purposely compared it with S&P BSE 100 as prior to mutual fund rationalisation, it was benchmarked against S&P BSE 200, and post that, it has been benchmarked against Nifty 50.

Source: Value Research

If we check the performance of this scheme in the post-rationalisation period, where it has changed its benchmark to Nifty 50, it is certainly underperforming its benchmark. We have compared the fund with S&P BSE Sensex 50. So, definitely, the fund has started underperforming in recent years.