Aditya Birla SL Digital India Fund – Direct Growth

The Aditya Birla Sun Life Digital India fund is an open-ended multi-sectoral equity scheme launched on January 15, 2000. The plan behind the formulation of this fund was the imperative need for long-term capital growth through a portfolio of 100% equity investments made specifically in technology and technology-enabled or dependent companies.

Mr. Kunal Sangoi is managing this fund. It is benchmarked against S&P BSE Teck Total Return Index. The top 3 sectors under this policy constitute around 93.58% of the assets.

Pros and Cons

How to Invest in Aditya Birla Sun Digital India fund?

Before investing in Aditya Birla Sun Life Digital India Fund, an investor should look out for the following parameters:

They should compare returns on the basis of the method of investment, either lump sum or SIP. The SIP rate of return is calculated by comparing the extended internal rate of returns by the fund, whereas the Lumpsum return is calculated by checking the general annualised return of the funds.

The fund’s returns must always be compared with the risks undertaken by investing in that fund. No matter how lucrative a fund may appear owing to the high profits promised by it, if the risk factor does not justify investing in it, then the investor should pass, keeping in mind the unpredictability of the stock market.

What is the Expense Ratio?

The fund where the investment is made charges an amount as that fund’s expense ratio from the investors in order to manage and oversee the fund on their behalf.

Who should invest in Aditya Birla Sun Digital India fund?

For making an investment in the Aditya Birla Sun Digital India Fund, investors need to be aware of its portfolio. The portfolio of this fund would reveal the fund’s exposure to various industries, the significant stocks that make up the majority of the fund’s holdings, and the degree of ‘overlap’ that might exist if you hold multiple funds concurrently.

This type of fund is the most appropriate one if an investor wishes to specialise in investing only in technology-related stocks, securities, and assets. Such is the specialty of this fund, which enables technology-interested investors to pursue their preferences.

Investing in this fund will require the prospective investors to possess unique insight and prowess into the specific areas of the investment, namely, technology. Additionally, the investor will need to have the inclination and capacity to monitor the prospects closely. Thus, there is a rigid nature to its portfolio, and investors are asked to be well-versed in it.

Benefits

● The Aditya Birla Sun Digital India Fund has stock holdings in the best technology-related industries in the market. It has shares in Infosys Ltd (25.5%), Tata Consultancy Services Ltd (10.5%), HCL Technologies Ltd (8.9%), Tech Mahindra Ltd (8%), and LTIM Ltd (6.6%).
● The record of returns of this fund has impressed many. The annualised trailing returns over different time periods are -10.70% (1yr), 28.9% (3yr), 21.5% (5yr), and 21.6% (since launch). Whereas, Category returns for the same time duration are: -10.8% (1yr), 21.8% (3yr), and 17.10% (5yr), respectively.
● According to Treynor’s ratio, this fund shows better risk-adjusted returns of 27.32 in the fund versus 26.18 as its category average. So, there is much security to it, and puts the investors’ worries to rest.
● The fund makes it efficient and profitable for investing in the rapidly growing technological and tech-derivative industries. These developing sectors are bound to produce many profits for the investor.