Aditya Birla Sun Life MIP II - Wealth 25 Plan (CRISIL FUND RANK 1) Launched in March 2004, Aditya Birla Sun Life MIP II - Wealth 25 Plan is a debt-oriented hybrid fund and has been ranked in the top 10 percentile (CRISIL Mutual Fund Rank 1) since June 2016. The fund’s primary objective is to generate regular income to make monthly payments or distribution to unit holders and secondary aim is growth of capital. The fund’s average assets under management (AUM) tallied at Rs 1,836 crore in June 2017. Performance The fund has given 10.8% compounded annual growth rate (CAGR) since its inception versus 9.7% by the category (MIP Aggressive Funds as per CRISIL ranking – June 2017) and 8.4% by the benchmark (CRISIL MIP Blended Fund Index). The fund has also outdone the category and its benchmark in all the periods analysed. Chart 1 – Performance as on September 18, 2017 Note: Returns above one year are annualised The fund has performed well in terms of risk-adjusted basis (as measured by Sharpe ratio) in the past three years. It has given a score of 0.1 compared with the category’s 0.08. Portfolio analysis The fund’s debt portfolio was primarily invested in safe bets, with 90.4% of the total debt holdings in top rated papers (AAA and A1+) and government securities for the past three years ended August 2017. The interest rate risk was managed well by altering its modified duration. For instance, when the benchmark yield for five-six years’ maturity bucket fell from 7.18% in March 2017 to 6.91% in August 2017, the fund increased its modified duration from 5.73 years to 5.85 years. Further, the fund maintained average equity exposure of 29%, with finance, auto, banks, pharmaceuticals and industrial capital goods forming the top five sectors in three years ended August 2017. Fund manager Mr Satyabrata Mohanty, CA & CFA, is Head - Mixed Assets and has over 18 years of experience in finance and research. Mr Vineet Maloo, B.Com & CA, is the equity fund manager and has 13 years of experience. Mr Pranay Sinha is fund manager – fixed income with around 11 years of experience in the financial markets