Fund Pick: Why Aditya Birla Sun Life Savings Fund is a category winner

Rs 1,00,000 invested on April 15, 2003 (inception of the fund) would have grown to Rs 3,81,800 at (7.66% CAGR) on June 02, 2021 compared with Rs 3,41,750 (7.01% CAGR) for the peer group

Crisil Research

2 min read Last Updated : Jun 09 2021 | 1:49 AM IST

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Launched in April 2003, Aditya Birla Sun Life Savings Fund has featured in the top 30 percentile of the Ultra Short Duration Funds category of the Crisil Mutual Fund Ranking (CMFR) for the past three quarters ended March 2021. The month-end assets under management of the fund increased from Rs 12,268 crore in April 2020 to Rs 18,188 crore in April 2021.

The fund has been managed by Kaustubh Gupta, Sunaina Da Cunha and Monika Gandhi since July 2011, June 2014 and March 2021, respectively. The scheme's investment objective is to generate regular income through investments in debt and money market instruments. Income may be generated through the receipt of coupon payments or the purchase and sale of securities in the underlying portfolio.

Consistent performance

The fund has consistently outperformed its peers (funds ranked under the ultra-short duration category in CMFR in March 2021) over the trailing periods under analysis.

A sum of Rs 1,00,000 invested in the fund on April 15, 2003 (inception of the fund) would have grown to Rs 3,81,800 at (7.66 per cent CAGR) on June 02, 2021 compared with Rs 3,41,750 (7.01 per cent CAGR) for the peer group during the same period.

Duration management

In the past three years, the fund maintained modified duration in the range of 0.31 years to 0.65 years, averaging 0.46 years compared with 0.38 years for its peers.

Portfolio analysis

The fund’s allocation to non-convertible debentures and bonds averaged 49 per cent over the past three years. Exposure to money market securities (certificates of deposit and commercial papers) averaged 34.3 per cent during this period. Allocation to government securities averaged 10 per cent in the same period.

In the past three years, the fund has predominantly invested in highest-rated debt securities (AAA/A1+), with an average exposure of 71 per cent. Allocation to AA equivalent-rated securities averaged 14.47 per cent. The fund has not taken exposure to securities rated A and below since June 2019.