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Birla AMC Core Equity

Scheme Rating

IME Scheme Rating

The Scheme does not meet our selection criteria at this time

Investment Option: Except for a higher level of concentration than a typical multi-cap MF, we find little to differentiate Birla PMS’s Core Equity Portfolio from the number of other multi-cap strategies in the market. There is a lack of a tightly defined investment philosophy, and at 25-30 stocks, the strategy is also more diversified than the more concentrated strategies run by other PMS providers.

IME Strategy Rating

General Strategy: The strategy involves investing in high-quality businesses integral to India’s growth narrative. The focus is on identifying and participating in the long-term growth of these businesses, with investment decisions grounded in attractive valuations and a margin of safety.

PMS Scheme Ratings are driven by IME’s Proprietary Scheme Rating Methodology, which takes into account our ratings of the Scheme’s investment strategy, its maturity, the investment team, and our separate rating on the AMC that runs this particular scheme. Our views on each of these individual criteria are available via the IME RMS – which you can view by reaching out to one of our relationship managers (using either the live chat or book appointment feature on this site).

IME View on Birla AMC Core Equity

Type: Flexi Cap | GARP | AUM (264.6 cr) | Inc Date (7 Jan 2009)

Aditya Birla Capital Core Equity Portfolio- Investment Strategy

Focus on a large cap universe following benchmark agnostic

Investment Philosophy 

 Focuses on identifying recurring winners that have consistently created value. The philosophy identifies sectors that are key to wealth creation. 

Core Equity portfolio uses a unique strategy based on superior IP/screeners. Following an extensive research to identify future winners. Also uses a comprehensive alert system to track industry wise valuations.

Follows a value investing approach to generate alpha returns. Identifying medium and long term misprice companies and buy them at a discount to the fundamental value. 

Investment Process

  • Portfolio Universe– built by applying Quantitative and Qualitative screeners and evaluating ROE/ROCE, leverage and debt servicing and management quality. 
  • Reject companies which do not filter through these screeners by identifying companies benefit from the catalysts which are micro/macro trunaround, demerger/delevraging and management change. 
  • Narrowing down the list to 50-60 sticks by having an optimised portfolio by analysing risk reward and having the potential upside of 100% in 3-4 years. 

Finally selecting 25-30 quality companies with high growth and potential upside. 

Trailing Performance

1yr 3yr 5yr Since Inception
Birla AMC Core Equity 25.6 16 17 20.2
S&P BSE 500 TRI 38.3 20 20 15.4
Alpha over Broad Mkt BM -12.7 -4 -3 4.8
Nifty 500 37.3 18.7 18.5
Alpha over Category BM -11.7 -2.7 -1.5

Performance as of: 30-Jun-24 | Inception Date: 07-Jan-09

Fund Managers

Natasha Lulla | 3-star rated FM

Fund Manager | 17 yrs Experience

Past Experience: Goldman Sachs (Analyst)

Natasha has been with Birla AMC PMS for over 8 years, having joined Birla AMC as a analyst in Apr-2012. Prior to joining Birla, Natasha worked as an Analyst at Goldman Sachs.

Vishal Gajwani | 3-star rated FM

FM – Equity | 18 yrs Experience | 11 yrs at current firm

Past Experience: Reliance Capital (Asst Fund Manager)

Mr. Gajwani is CA and CFA (US). Prior to joining Aditya Birla Sun Life Mutual Fund, he has worked with Nippon India Mutual Fund.

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures1% fixed + 20% above 12% hurdle
Exit Fees1yr(3%), 2yr(2%)

AMC

AMC: Birla AMC PMS (click link for detailed AMC review)

Not a top recommendation due to being an AMC-driven PMS: Birla AMC PMS suffers from the common ailments of large AMC-driven PMS houses (PMS as an add-on instead of a clearly segregated business unit, churn in the investment team, a lack of skin in the game for the CIO and typically loosely defined investment philosophies). While the distribution strengths of the AMC can help the PMS scale and there are benefits of research access, most AMC driven PMS's cannot compare to strong CIO-cum-founder driven PMS houses.

AMC Rating

3 of 5 stars

AMC Pedigree

3 of 5 stars

AMC Size

4 of 5 stars

Team Pedigree

3 of 5 stars

Inv Philosophy

1 of 5 stars

Performance

2 of 5 stars

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