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Future Prospects

Rajesh Chandna wants to know the prospects of Birla Sun Life Asset Allocation Aggressive Fund

Tell me about the prospects of Birla Sun Life Asset Allocation Aggressive fund. Should I invest some money in Reliance Equity fund?
-Rajesh Chandna

Birla Sun Life Asset Allocation Aggressive Plan is a fund of funds which invests only in equity and debt funds of the Birla Sun Life Family. It has been able to preserve the value erosion much better than most other equity funds in the market downslide since January. Of its small fund asset base of Rs 6 crore, it is 60 per cent into cash now with only 40 per cent in equity, through its equity funds. This fund could be a choice for modest growth with higher stability. This may not be a good option for good long-term growth.

Reliance Equity seeks long-term growth from a portfolio of stocks of the top 100 companies by market cap, which are also available in the derivatives segment. The fund can often hedge its portfolio and remain in cash to guard against downside. Reliance Equity has been a modest success in protecting the downside so far through the steep fall of the market. But it has a limited history. Besides, the fund is an expensive bet for its unamortized initial expense. Reliance Equity is far from being attractive fund.

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