The manufacturing sector is one of the largest industries that will grow in the future. Even the government of India spends its money in the manufacturing field. Indian population believes in growth so every single person is shifting to investing, by investing they create wealth and financial security for the future.
When it comes to investing several questions come to mind but the most important one. Is there any manufacturing fund where we can invest, the answer is there are multiple funds in the mutual fund of the manufacturing sector. Aditya Birla Manufacturing Fund is one of them.
In this article, we will delve into this mutual fund scheme, its investing strategy, its fund manager who handles this fund, and some suitability is this fund right for your portfolio.
About Aditya Birla Manufacturing Fund?
Aditya Birla Sun Life Manufacturing Equity Fund is an equity mutual fund. this manufacturing scheme was launched on 31 January 2015. This fund gives a consistent return with an Asset Under Management of Rs. 1,006 crore as of 31 May 2024. This fund has the potential to give long-term profitable returns with capital growth.
ABSL is one of the top fund among the manufacturing mutual funds, it is an open-ended equity scheme. The industries of financial services, IT services, logistics, and travel are not included in the ABSL Manufacturing Equity Fund’s investment universe. & Recreation, Infrastructure Improvement. This fund provides growth with financial security if an investor invests for a long period of time.
What Investing Strategy Does the Aditya Birla Manufacturing Fund Follow?
The principal aim of the scheme is to provide long-term capital growth for its unit holders through a portfolio primarily composed of equities and equity-related securities of manufacturing businesses.
Let’s understand this in simple terms, the ABSL manufacturing fund’s main objective is to generate long term capital appreciation, which means this fund provide a better return on long term investment, this equity scheme is built to maintain a perfect portfolio of manufacturing funds so that an investor can gain a better bundle of profit which they desired for.
Who Managed Aditya Birla Sun Life Manufacturing Fund?
With 13 years of experience, Mr. Harish Krishnan has worked in fund management and equity research. He managed Kotak’s offshore assets from his bases in Singapore and Dubai before joining Kotak Mutual Fund. During his previous employment, he was employed at Infosys Technologies Ltd. Mr. Krishnan has a B.Tech in electronics and communications, a PGDBM from IIM Kozhikode, and a CFA. He holds a postgraduate degree in management from the Indian Institute of Management, Kozhikode, a Bachelor of Technology (Electronics & Communications) from Government Engineering College, Trichur, and a Chartered Financial Analyst designation from the CFA Institute.
Key Benefit of Aditya Birla Sun Life Manufacturing Fund?
The key benefit of the Aditya Birla Sun Life Manufacturing Fund is its focus on capturing the growth potential in the Indian manufacturing sector. There are several benefits of the ABSL fund to count on here are some of them.
Some of the key advantages of this fund:
Exposure to Manufacturing Sector Growth:
- The fund invests primarily in companies operating in the manufacturing industry in India.
- This provides investors with exposure to the growth and expansion of the Indian manufacturing sector, which is seen as a key driver of the country’s economic development.
Diversification:
- The fund holds a diversified portfolio of stocks across various manufacturing sub-sectors, such as industrial, capital goods, and automobiles.
- This diversification helps mitigate company-specific and sector-specific risks.
Experienced Fund Management:
- The fund is managed by a team of experienced investment professionals with expertise in the manufacturing sector.
- The managers utilize in-depth research and analysis to identify promising manufacturing companies with strong growth potential.
Long-Term Outlook:
- The fund adopts a long-term investment approach, holding stocks for extended periods to benefit from the growth of the manufacturing sector.
- This long-term focus helps generate potentially higher returns compared to more short-term trading strategies.
Potential for Capital Appreciation:
- By investing in companies poised to capitalize on the growth of the Indian manufacturing industry, the fund aims to deliver capital appreciation for investors over the long run.
Overall, the Aditya Birla Sun Life Manufacturing Fund offers investors a targeted way to participate in the growth story of the Indian manufacturing sector through a diversified and professionally managed investment vehicle.
Is Aditya Birla Suitable for You?
The key points regarding the suitability of the Aditya Birla Sun Life Manufacturing Fund are:
Narrow Investment Mandate:
The fund has a narrowly defined investment focus on the manufacturing sector.
This limited scope may not be the most suitable option for all investors, as it lacks the diversification and flexibility of a flexi-cap fund.
Preference for Flexi-Cap Funds:
The advice suggests that investors should generally prefer flexi-cap funds over narrowly focused sector or thematic funds.
Flexi-cap funds provide the fund management team with the freedom to invest across different sectors and market capitalizations, potentially offering better diversification and return potential.
Suitability through a Systematic Investment plan
If investors do choose to invest in the Aditya Birla Sun Life Manufacturing Fund, the recommendation is to do so through the Systematic Investment Plan route.
This allows for a more disciplined and regular investment approach, which can be beneficial for long-term wealth creation.
In summary, the suitability of the Aditya Birla Sun Life Manufacturing Fund is somewhat limited, as the narrow investment mandate may not be the most suitable option for all investors. The preference is for flexi-cap funds that offer greater diversification and flexibility.
However, if an investor chooses to invest in this fund, it is recommended to do so through the systematic investment plan route to benefit from the long-term growth potential of the manufacturing sector
Conclusion
In conclusion, investors looking for focused exposure to the Indian manufacturing sector and its development potential may find the Aditya Birla Sun Life Manufacturing Equity Fund to be a good choice. But before putting any money into this specialized fund, investors have to think carefully about their overall investing goals and risk tolerance. If investing in this fund, it is advised to do so through a SIP (Systematic Investment Plan) in order to take advantage of the manufacturing sector’s potential for long-term growth in a methodical way.
