Aditya Birla Sun Life Special Opportunities Fund

Albert Einstein once said “In The Middle Of Difficulty Lies Opportunity”. Today is difficult. Today is Opportunity.

The phrase above describes 2020 in 1 sentence. The year which started with Covid-19 will probably end with it too. The year has been fraught with mass hysteria showering markets with volatility and conservatism. 

The wide-spread panic because of Covid-19, saw Fear acclimatize itself with investors, global and domestic alike. The mass-dumping equities overnight, saw trillions in wealth wipeout in a matter of 2 months. 

Indian indices too fell victim, witnessing their biggest drop (-~40%) in 10 years to in a matter of 4 months (shown in table below):

Covid continued to dominate headlines, landlocking the world socio-economically inducing recessionary fears, bleak budgets and comforted GDPs (India saw record -23.9% contraction)

This is where the fork in the road was visible for the 1st team in this foggy year. While most favored the road taken of vouching for safe-haven assets, there were who braved the less treaded upon roads, i.e. opportunities, and bagged themselves a big reward. 

The graph below shows how Nifty and its sub-indices have fared since March lockdown:

In fact, for every time there has been a crisis, opportunities have followed right after as the graph below shows:

Unlocking 4.0 unlocked 40+ different opportunities with relief packages, fervent factory activity and magnetic macros. As Unlocking 5.0 comes gains momentum, newer and different special opportunities stand at bay waiting for those who choose to surf the rough seas.

To help you capitalize on the next wave of opportunities, let us understand what Special Opportunities mean in market parlance and where they are most visible as of date:

Special Situations can arise from any of the following windows:

Why Indian Markets are the best Diwali Gift you can buy yourself this year:

Already Excited to find the diamond amongst the stones? Aditya Birla MF brings your portfolio a ticket to fight the flight!

Aditya Birla Sun Life Special Opportunities Fund

Aditya Birla Sun Life Special Opportunities Fund is poised seek opportunities in most uncertain period since WWII, capitalizing on current crunched climate & emerging new trends. Wearing a Margin Of Safety, the fund is a value play consuming companies available at lower valuations than their fair value.

Investment Approach involves:

1. Focused Portfolio of 35-40 stocks portfolio with high active share
2. Sector and Market cap Agnostic
3. Follow the “Price-Target approach” to derive value from tactical opportunities arising due to any special situation

Investment Philosophy follows:

1. Bottom-up approach to stock-picking, based on:
   • Opportunity Size & Scalability
   • Margin Of Safety
   • ROE Growth Potential

Investor Takeaway

From Catch to Snatch, this fund offers it all. It merit accolades for its ability to be a frontrunner in bearish times. 

It is more suitable for those wearing higher risk appetites but can feature in limited fashion in moderately high risk-return profiled portfolios.

Those investing in this fund should look at an average indicative horizon of up to 5 years & more.

Key Details About The Fund