Valuation gap makes Birla Sun Life Top 100 Fund interesting

With a range of Mutual Fund products available for investing, investors need to, no doubt identify top performing funds from the category , but also need to understand the valuation gaps if any between small cap and large cap stocks , in order to firm up on the orientation or skewness of their  mutual fund portfolio. From the ultra- long term perspective, the orientation will determine the excess returns that an individual may gain.

At the current juncture there exists a valuation gap in small and large cap stocks. BSE Small-cap index is trading at PE multiple of 74x on TTM basis, and BSE Sensex is trading at 20x on TTM basis. Looking at current valuation gap , it goes without saying that investing in large cap stocks may be a good idea. 

Birla Sun Life Top 100 Fund is one fund that can be looked at in case an investor wants to invest in a large cap oriented mutual fund. The said fund is a constant top ranker, being evaluated by various ranking agencies. The fund has generated annualised 25.4 per cent over a 3 year time frame, 17.13 per cent over a 5 year time frame and 13.55 per cent over a 10 year time frame.

Mutual Fund investing is catching up with investors as an increasing number of investors are realising that beating the markets is a job that needs immaculate attention and expertise. Mutual Funds are one sure way of ensuring that only the best possible decision maker is taking the investment and portfolio decisions.