Should I Invest in ABSL Equity Hybrid 95 Fund for 5 years?

Posted by Dishika Baheti on October 12th, 2018

Aditya Birla Sun Life Equity Hybrid 95 Fund is a top performing aggressive hybrid fund in which 5 year is an ideal tenure for investment. The fund grabs benefits from the high-quality instruments of equity and debt market. Since 1995, it has provided consistent returns to the investors through a mixed portfolio and allowed investors to gain capital appreciations.

Fund Details

ABSL Equity Hybrid 95 Fund has been in the Indian mutual fund industry since 1995. In the 23 years since launch, it has generated an annualised return of 19.58% which proves the efficiency of the scheme to provide long-term gains. The fund manager of this mutual fund generally invests 70% in equity and 30% in debt instruments to maintain a balance between risk and reward. The equity instruments are mostly growth oriented large cap stocks while the debt instruments are of high quality with moderate rate sensitivity which also adds decent corpus as they have an average maturity of 6.92 years. The fund has performed well in every cycle of the market and is expected to provide similar results in the future.

Is it the Right Time to Invest?

Definitely! The equity market has been facing a tough time to sustain their intrinsic prices, and many of the stocks selected by ABSL Hybrid Equity Mutual Fund are close to their 52 weeks low and 3 years low as well. As the fund has an equity-oriented portfolio, the NAV has been brought down by 10% within a month (dated 9th October 2018). This has created a perfect opportunity for the new investors to enter by investing in Aditya Birla Sunlife Equity Hybrid 95 Fund through SIP as well as lumpsum to gain surplus returns.

Expected Returns Through SIP & Lumpsum for 5 Years

In the next 5 years, if the market is supportive 14 to 16% returns can be expected unless an unwanted calamity occurs in the market. However, SIP investment for 5 years can eliminate the risk through rupee-cost averaging. Lumpsum investment, on the other hand, can be slightly riskier as the market can also fall further. According to the recent trends, the table below describes the returns that can be generated be Aditya Birla Sun Life Hybrid Equity Fund in the next 5 years for SIP and Lumpsum investment.

5 Year Possible Returns Through SIP

5 Year Possible Returns Through Lumpsum

It must be noted that the actual returns might not be exactly as mentioned in the table and can fluctuate but are much likely to be closer to the stated amount.

Conclusion

As it is an excellent opportunity to invest in Aditya Birla Sun Life Hybrid Equity Mutual Fund, investors can expect terrific returns in the next 5 years. The fund has the experience to navigate smartly through every market condition due to which a large number of investors can trust it. The risk is low, and the returns are moderate, hence new as well as experienced investors can enjoy beneficial returns in the upcoming years.

The article describes Aditya Birla Sun Life Hybrid Equity Fund and speaks about the expected returns in the next 5 years though Systematic Investment Plan and Lumpsum.