Birla SL Manufacturing Equity Fund NFO-Should you invest?

Birla SL Manufacturing Equity Fund-NFOBirla Sun Life Manufacturing Equity Fund NFO-Should you invest?

New Government’s “Make in India” campaign is creating excitement in manufacturing industry. Birla SL Manufacturing Equity Mutual Fund is one unique Mutual Fund NFO, which invests in Manufacturing companies. Such unique scheme is now attracting several investors. This post is based on request from Akshay on Suggest a Topic. How good is Birla Sun Life Manufacturing Equity Mutual NFO? What are its features and what risks you should consider before investing in Birla Sun Life Manufacturing Equity Fund NFO?

Also Read: What are mutual funds and are various types of mutual funds in India?

Features of Birla Sun Life Manufacturing Equity Fund NFO

  • Open ended mutual fund scheme.
  • Opens for subscription on 13-Jan-2015
  • Closes for subscription on 27-Jan-2015. This would reopen for subscription after 5 days after closure date.
  • This fund benchmark is S&P BSE 500 index. This would focus on 240 manufacturing companies listed on S&P BSE 500.
  • It would invest in companies that are engaged in Engineering, Capital Goods, Consumer Goods, Pharma, Automobiles, Textiles, Electronics etc.

Why to invest in this NFO?

  • New Government focusing on Infrastructure, Defence and creation of Smart Cities would enable several opportunities in manufacturing space.
  • New Government focus is on amending some of the reforms like New GST Implementation, Petro Products linking to market price, FDI investing in various sectors etc. would help manufacturing space to get fresh investments. “Make in India” campaign focuses on manufacturing growth which would create millions of job opportunities.
  • Recent times, there is fall in interest rates. This  would help manufacturing segment to run at lesser manufacturing cost.
  • It does not invest in a single sector. It invests in approx 22 sectors, hence there is less risks to invest in such mutual fund scheme.
  • Amit Shah is the Fund Manager for this NFO. Currently he is also managing successful mutual fund schemes like Birla SL Equity fund, Birla SL GenNext, Birla SL Special Situations funds etc.

Who should invest in Birla SL Manufacturing Equity Fund?

  • This is for high risk investors.
  • Suitable for long term investor who has a positive view on manufacturing segment and willing to take risks.
  • One should note that this mutual fund scheme does not invest directly in sectors like banking, Infrastructure, Information Technology (IT) etc., which are also expected to grow faster now. Hence, if you are thinking to invest in such sectors, you can look for other mutual  fund schemes. 

Also read: Growth Vs Dividend Option – Which is better investment option in mutual funds?

Conclusion: Birla SL Manufacturing equity fund scheme is good for those who are willing to take risks and have a positive view on the manufacturing segment in coming years. With new Government bringing new reforms and focusing on manufacturing segment, this would be definitely a good bet. However, like I always say, instead of investing a lump sum in this mutual fund, you should invest through SIP for next 4-5 years to get good returns.

Readers, what is your view on this new Birla SL Manufacturing equity mutual fund scheme? Are you willing to invest in such schemes?

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Birla SL Manufacturing Equity Fund NFO-Should you invest


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