As an investor, you’ve been looking to build a resilient mutual fund portfolio. However, have you ever considered understanding the psychology of the fund house you have been investing with? It’s their approach to investing and handling money market risks that ultimately reflects in your portfolio.
Bank of India and Aditya Birla are two of the stalwarts when you consider mutual fund houses in India. Each of these funds has been investing in large cap, small cap, flexi cap, and even some mix of different categories. In this blog, we have compared the top offerings of both these fund houses, so that you can understand where your money can work best.
Overview of Bank of India Funds
It was in 2008 that Bank of India launched its first mutual fund scheme, which was known as Bharti AXA mutual fund. Over the years, this fund house has established a strong reputation, providing consistent returns across different categories.
Bank of India mutual funds are known for their disciplined approach. While the large cap funds offer stability, the mid and smaller cap funds bring you the opportunity for growth.
Overview of Aditya Birla Funds
Aditya Birla Sun Life started its journey much earlier, in 1994. This fund house offers a diverse range of options to investors across different segments. Aditya Birla mutual funds are known for their research-oriented approach and strong portfolio management.
While the large cap funds prioritize stability, the mid and small cap funds focus on growth potential. You also have flexi-cap funds, where the fund managers shift allocations based on market trends.
Comparison Between BOI and Aditya Birla Funds Across Different Categories
| Fund Category | Bank of India Returns | Aditya Birla Sun Life Returns |
|---|---|---|
| Large Cap | 1-Year: -4.50%
3-Year: 15.61% 5-Year: N/A |
1-Year: 0.36%
3-Year: 15.79% 5-Year: 19.58% |
| Large & Mid Cap | 1-Year: -5.91%
3-Year: 16.89% 5-Year: 20.82% |
1-Year: -3.36%
3-Year: 14.40% 5-Year: 17.79% |
| Small Cap | 1-Year: 6.65%
3-Year: 21.50% 5-Year: 29.61% |
1-Year: -7.72%
3-Year: 16.65% 5-Year: 22.13% |
| Flexi Cap | 1-Year: -6.32%
3-Year: 22.11% 5-Year: 26.42% |
1-Year: 1.68%
3-Year: 17.79% 5-Year: 20.48% |
Based on the table presented above, several interesting patterns emerge when you compare BOI and Aditya Birla Sun Life AMCs.
- Aditya Birla’s large-cap fund shows slightly more stability over one year, while both deliver comparable 3-year returns.
- Bank of India shows stronger mid-term performance, making it suitable for investors seeking higher growth.
- Bank of India small-cap fund outperformed Aditya Birla. These funds delivered better short-term and long-term growth.
- Aditya Birla shows positive one-year returns, but Bank of India leads in mid- and long-term performance.
Selecting The Right Mutual Funds
If you’re someone looking for aggressive growth with a higher risk appetite, you may go for the small and mid cap option of Bank of India mutual funds.
On the other hand, if you prefer a balanced approach to wealth creation with steady growth, check out the large and flexi-cap options of Aditya Birla. Short- to medium-term goals suit conservative options, whereas long-term wealth creation aligns with higher-risk strategies.
Conclusion
When you choose a mutual fund, make sure not to look only at the past returns. Rather, investors must also factor in their financial goals, risk appetite, and time horizon. Along with this, focus on the sectors where the fund invests to get an idea of its growth trajectory.
Both these mutual fund houses offer compelling options to grow your wealth across the popular categories. Now that you have a better understanding of the strengths of each fund, you can proceed to make an informed decision.
A well-researched mix from both fund families can help you build a diversified and resilient portfolio, aligned with your goals.
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