Birla Sun Life Equity Savings Mutual Fund

Birla Sun Life Equity Savings Fund uses a unique combination of equity derivative strategies, arbitrage opportunities, pure equity investments, debt & money market instruments which together intends to deliver Tax Efficient Growth with Low Volatility.

Birla Sun Life Equity Savings Mutual Fund - Highlights

Long term capital growth and income
An open ended equity scheme investing in equity and equity related securities including the use of equity derivatives strategies and arbitrage opportunities with balance exposure in debt and money market instruments

Helping you seize the right window of opportunity.

Presenting, Birla Sun Life Equity Savings Fund (An Open ended Equity Scheme) – a unique investment opportunity that aims to provide capital appreciation and income distribution by using a combination of equity derivatives strategies, arbitrage opportunities and pure equity investments. This provides a greater degree of diversification than investing in a single asset class. This scheme also provides the tax efficiency of an equity fund i.e. the income becomes tax-free if the holding period is more than one year.

Birla Sun Life Equity Savings Mutual Fund - Highlights

Tax efficiency
Lower volatility
Diversified strategy

Investment objective

To provide capital appreciation and income distribution to the investors by using a blend of equity derivatives strategies, arbitrage opportunities and pure equity investments. The scheme does not guarantee/indicate any returns. There is no assurance that the schemes' objectives will be met.

Key features of Birla Sun Life Equity Savings Fund

Low volatility – Enjoys low volatility and risk compared to other equity funds due to limited exposure to directional equity

Arbitrage opportunities – A part of portfolio will be managed using the arbitrage strategy by taking advantage of price differentials prevailing in equity market.

Tax efficiency – With an asset allocation mix comprising of spot equity, arbitrage and fixed income, tax treatment is similar to that of equity funds

Diversified strategy – An efficient mix of 3 strategies helps reduce volatility while providing opportunities to participate in the market upside while restricting the downside.

What is arbitrage opportunity?

An Arbitrage opportunity arises when there is a price differential or mispricing prevailing for stocks/index in different markets segments (cash & futures) due to market inefficiencies. It can be used to one's advantage by buying stock/index from the market where the price is lower and selling it in the market where the price is higher and vice-versa. Let us understand this with the help of an illustration –

For example, Company XYZ's stock trades at ` 100 per share in cash market and the same is trading at ` 105 in futures market. An arbitrageur would purchase the stock for 100 in cash market and sell it for ` 105 in future market, making the difference of ` 5 per share as profit.

This is assuming the cost to be zero. In practice there is a cost of executing the arbitrage transaction (in this case, it's the STT and the brokerage charges) – The above is only for the purpose of illustration.

Birla Sun Life Equity Savings Fund

Tax efficiency

Particulars	Non Equity Taxation	Equity Taxation
Investment Amount	10,000	10,000
Assumed pre-tax annualised returns	9.00%	9.00%
Interest earned after 1 year	900	900
Amount withdrawable after 1 year	10,900	10,900
Taxable Income / Gains	900	900
Applicable Tax Rate*	33.99%	0%
Tax Liability	305.91	0
Post Tax Gains	594.09	900
Post Tax Annualised Yield	5.94%	9.00%

Given the tax advantage, Birla Sun Life Equity Savings Fund can generate potentially higher post tax returns as compared to non equity investments.

*Higher tax bracket assumed for Applicable Tax Rate in respective investment categories (Equity & non Equity) investors are advised to consult their tax advisor in view of individual nature of tax benefits.

Get the latest NAV on SMS, send NAV <51> as an SMS to 56161. Premium SMS charges apply.

Nature of scheme	An Open ended Equity Scheme
Inception Date (Date Of Allotment)	8-May-2015
Scheme Objective	Birla Sun Life Equity Savings Fund uses a unique combination of equity derivative strategies, arbitrage opportunities, pure equity investments, debt & money market instruments which together intends to deliver Tax Efficient Growth with Low Volatility.
Fund Manager	Mr. Lovelish Solanki, Mr. Satyabrata Mohanty and Mr. Pranay Sinha
Investor Risk Profile	Medium
Exit Load	For redemption/switch out of units within 365 days from the date of allotment: 1.00% of applicable NAV. For redemption/switch out of units after 365 days from the date of allotment: Nil.
*In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors' assessment of various factors including the service rendered by the distributor.