ABSL AMC mops up Rs. 3,500 cr from 3 funds in 6 months

Aditya Birla SunLife AMC, one of the top-3 fund houses, has mopped up Rs 3,500 crore by the launch of three NFOs, multi-cap fund, ESG and special opportunity fund, in the past six months. It was revealed by the company's MD and CEO, A Balasubramanian to Bizz Buzz. He also informed that the company has filed for another fund before Sebi and is waiting for the approval from the market regulator.

He said that as of now, the company's entire focus was on the existing fund.

"New fund offers (NFOs) in future from the company will depend on if there was any gap between the products," he said. The fund house has identified key trends such as manufacturing, digitization, sustainability coupled with cyclical revival in real estate sector and resurgence in mid and small caps that might play out in the next 3-5 years.

Balasubramanian, said: "We believe that key to successful investing over a long period is ability to spot trends. Looking at data since 2002, the top five performing sectors vary greatly in each market cycle. The variation in returns among the best and worst performing industries during a cycle is too large, again underscoring the importance of picking the right themes."

During the period of 2003-08 there was an infrastructure driven boost to gross domestic product (GDP) growth. While in the period between 2011-15 there was resurgence of export sectors followed by consumption story between 2016-20.

The Alternate Assets Equity Investments team of the asset manager has analyzed the big trends that have played out over the last couple of decades and have identified the key enablers of any big structural trends for the future. The drivers of big trends depend on phases of the economic cycle, government policy focus, industry disruptors and emerging sectors.

While digitisation can transform India's economy and newly digitised sectors will see value emergence, the fund house also believes that there will be cyclical revival in real estate and price improvement due to the lower supply and reducing inventory.

Despite the sharp run-up in mid and small cap fund house still believe that it should outperform large-caps led by economic recovery, lower interest rates and increased representation in emerging sectors like chemical digital platform among others.