EMPOWER Monthly Factsheet August 2021 (Data as on 31st July 2021) HOWHOW CANCAN EVERYEVERY DREAMDREAM ININ AA FAMILYFAMILY ATTAINATTAIN FINANCIALFINANCIAL FREEDOM?FREEDOM? Give your and your family's dream the power of Multi-SIP and let eve dream #WINWITHSIP. For more details, refer to page no. 16 Mutual Fund investments are subject to market risks, read all scheme related documents carefully. INDEX Foreword by Mr. Abhishek Singhal 03 Aditya Birla Sun Life Flexi Cap Fund 53 Equity Outlook by Mr. Satyabrata Mohanty 04 Aditya Birla Sun Life Equity Advantage Fund 54 Debt Outlook by Mr. Mohit Sharma 05 Aditya Birla Sun Life MNC Fund 55 Funds at a Glance & Product Labeling Disclosures 06 Aditya Birla Sun Life Midcap Fund 56 Tax Reckoner 14 Aditya Birla Sun Life Small Cap Fund 57 How can a family plan and achieve multiple goals together? 16 Aditya Birla Sun Life Multi Cap Fund 58 Different Solutions To Suit Your Various Needs 20 Aditya Birla Sun Life Pure Value Fund 59 Savings Solutions 21 Aditya Birla Sun Life Manufacturing Equity Fund 60 Aditya Birla Sun Life Overnight Fund 22 Aditya Birla Sun Life Banking and Financial Services Fund 61 Aditya Birla Sun Life Liquid Fund 23 Aditya Birla Sun Life Dividend Yield Fund 62 Aditya Birla Sun Life Money Manager Fund 24 Aditya Birla Sun Life Infrastructure Fund 63 Aditya Birla Sun Life Low Duration Fund 25 Aditya Birla Sun Life Digital India Fund 64 Aditya Birla Sun Life Savings Fund 26 Aditya Birla Sun Life India GenNext Fund 65 Aditya Birla Sun Life Floating Rate Fund 27 Aditya Birla Sun Life International Equity Fund - Plan A 66 Aditya Birla Sun Life Arbitrage Fund 28 Aditya Birla Sun Life International Equity Fund - Plan B 67 Aditya Birla Sun Life Corporate Bond Fund 29 Aditya Birla Sun Life Commodity Equities Fund - Global Agri Plan 68 Aditya Birla Sun Life Short Term Fund 30 Aditya Birla Sun Life Global Emerging Opportunities Fund 69 Aditya Birla Sun Life Banking & PSU Debt Fund 31 Aditya Birla Sun Life Global Excellence Equity Fund of Fund 70 Aditya Birla Sun Life Medium Term Plan Number of Segregated Portfolios – 1 32 Aditya Birla Sun Life Gold Fund 71 Aditya Birla Sun Life Credit Risk Fund Number of Segregated Portfolios – 1 33 Aditya Birla Sun Life Gold ETF 72 Aditya Birla Sun Life Dynamic Bond Fund Number of Segregated Portfolios – 1 34 Aditya Birla Sun Life Banking ETF 73 Aditya Birla Sun Life Income Fund 35 Aditya Birla Sun Life Nifty ETF 74 Aditya Birla Sun Life Government Securities Fund 36 Aditya Birla Sun Life Nifty Next 50 ETF 75 Aditya Birla Sun Life Active Debt Multi Manager FoF Scheme 37 Aditya Birla Sun Life Sensex ETF 76 Aditya Birla Sun Life Financial Planning FOF - Conservative Plan 38 Aditya Birla Sun Life Asset Allocator FoF 77 Aditya Birla Sun Life Financial Planning FOF - Moderate Plan 39 Aditya Birla Sun Life Financial Planning FOF-Aggressive Plan 78 Aditya Birla Sun Life Retirement Fund - The 50s Plus Debt Plan 40 Aditya Birla Sun Life Pharma & Healthcare Fund 79 Regular Income Solutions 41 Aditya Birla Sun Life Bal Bhavishya Yojna 80 Aditya Birla Sun Life Regular Savings Fund 42 Aditya Birla Sun Life Retirement Fund - The 30s Plan 81 Tax Savings Solutions 43 Aditya Birla Sun Life Retirement Fund - The 40s Plan 82 Aditya Birla Sun Life Tax Relief ‘96 44 Aditya Birla Sun Life Retirement Fund - The 50s Plan 83 Aditya Birla Sun Life Tax Plan 45 Aditya Birla Sun Life PSU Equity Fund 84 Wealth Solutions 46 Aditya Birla Sun Life Special Opportunities Fund 85 Aditya Birla Sun Life Equity Savings Fund 47 Aditya Birla Sun Life ESG Fund 86 Aditya Birla Sun Life Balanced Advantage Fund 48 Close Ended Scheme Performance 87 Aditya Birla Sun Life Equity Hybrid ‘95 Fund 49 Fund Manager Wise Scheme Details 88 Aditya Birla Sun Life Index Fund 50 Portfolios 89 Aditya Birla Sun Life Frontline Equity Fund 51 Industry Allocation 109 Aditya Birla Sun Life Focused Equity Fund 52 Glossary Page 114 www.facebook.com/abcabslmf https://twitter.com/abcabslmf https://mutualfund.adityabirlacapital.com 2 Dear All, As we head into the festive season, it is a great respite from the second wave of the COVID-19 pandemic in India. As the current ‘Unlock’ begins, we sincerely hope that India doesn’t go through the third wave of Covid as is much feared. However, despite the fears, with the stimulus provided by the Government & industry’s resole to get back to business as usual, the Indian economy has started showing signs of recovery. Markets are certainly cheering the same and its current rally is on road to being the longest monthly rally in Indian market history. Along the way, it’s refreshing to see mega IPOs and new age businesses also being listed as added investing opportunities. However, what’s been of greater interest is the big trend that’s unfolding already – Passives. While in India, the debate on Active vs Passive still rages, the world’s largest market, USA is already showing the way. Already more money flows into Passives than Actives. In India too, Passive Funds (ETFs, Index Funds and Fund of Funds) have grown at a breakneck pace. To put it in perspective, Passive Funds, that represented 19% of all fund assets in US in 2010 have grown to 40% of all fund assets by December 2020. In India too, this number has grown from less than 2% in 2010 to little over 10% by Dec 2020. As of end of June, its already over 13% of total MF industry. While this growth has been triggered by EPFO’s decision to invest in equities through ETFs in 2015, the business growth seems as broad based as the stock market itself and is evident from the fact that of the total 100 ETFs listed on NSE, 21 have come in the last 1 year alone. A closer look at the Passive industry shows that it’s not only the ETFs which are growing owing to their ease of trading, very low cost & performance issues of certain traditional MF categories, but other categories like Index & FOFs which are able to offer Passives participation to Distribution partners have also grown quickly. In the past 2 years, Index Funds AUM has risen from a meagre ~ ₹6500 crores to ~ ₹25000 crores, which is a 280% rise. At the same time, Fund of Funds AUM have multiplied 9x in from Jan’19 to Jun’21 (rise from ~ ₹5700 crores to ~ ₹52000 crores), largely driven by the internationally focused themes. A recent survey from CRISIL with IFAs found that a whopping 53% were inclined to or already advising Passive funds in their client portfolios. With alpha being elusive across active categories and SEBI also easing norms for Passive Funds – focus on promotion of lower cost products, efficient market making for ETFs, development of fixed income index & ETF products, this industry is poised for an even stronger growth path ahead. This last quarter saw ABSLAMC focusing on this new opportunity through creation of a dedicated vertical for focus on Passives. Accordingly, we have already launched 3 index funds – Aditya Birla Sun Life Nifty Small Cap 50 Index Fund, Aditya Birla Sun Life Nifty Midcap 150 Index Fund and its first smart beta offering in Aditya Birla Sun Life Nifty 50 Equal Weight Index Fund. While the beginning is small with about 40000 investors & ~125 Crores, it is seeing traction and has the potential of providing strong impetus to our overall market share & equity sales. Already our FoFs (Aditya Birla Sun Life Asset Allocator FoF, Aditya Birla Sun Life Global Excellence Equity FoF & Aditya Birla Sun Life Global Emerging Opportunities Fund) are gaining ground. Over the coming few months & quarters, we will also deepen our presence with our first Debt Index Fund as well as a bunch of thematic ETFs and global FoFs. Perhaps we will have quantitative technique driven ideas also making debut. Watch out for this space! As the industry races to launch more and more products (13 out of 28 new product filings with SEBI in July 2021 were Passives schemes), the point to ponder is, what is it that will help deliver the business goals of market share, growth & better customer & partner experience? In the ~₹33.26 lakh crore Indian MF industry, having a share of only ~13% currently in passives, how will the dynamics change by the end of this decade? I think, that with technology enabling business for all distribution & advisory platforms, passives will grow at an even faster pace in India that the global peers have seen over the past decade. Perhaps by 2026 itself, we may see over 25% of industry assets being in Passives. In preparing us for that growth and targeting doubling of our present AUM in next 12-15 months, we will have to build a differentiated product line up, build distribution partnerships, digital infrastructure that supports investors & partners seamlessly and most importantly our own ability to package, offer investment solutions & advisory that improves investment experience and portfolio outcomes for our investors and their advisors alike. We have already begun well with offerings in all key pegs – Large Cap (ETF & Index Funds), Midcap (Index Fund), Small Cap (Index Fund), Gold (ETF & FoF), Smart Beta (Index Fund), Global (FoFs) & Asset Allocation Solutions (FoFs). As markets become broader based, we believe alpha will remain elusive and the need for Passive solutions will drive demand even further from all quarters – HNIs & Retail investors alike. Institutional investors will also participate in solutions that are best suited & designed for their needs – accrual focused indexed products offering simplicity, liquidity, yield & safety.