Aditya Birla Sun Life Commodity Mutual Funds

Aditya Birla Commodity Equities Fund-Global Agri Plan is an international wealth creation solution. Aditya Birla Sun Life Mutual Fund launched this exclusive scheme on January 1, 2013. As of the third quarter of 2022, it has INR 17 crores of Assets Under Management. Aditya Birla Commodity Equities Mutual Fund is a medium-sized fund with an expense ratio of 1,29 per cent. With 20 years of expertise in portfolio management, Mr Vinod Bhat is the key fund manager of Aditya Birla Commodity Equity Schemes.

Best Mutual Funds 2024

Returns

Sort by

Investment Objective:

Aditya Birla Commodity Equities Fund allows investors to grow their finances by investing in world-class ventures around the globe. The five major holdings of Aditya Birla Sun Life Commodity Equities Fund are Archer Daniels Midland Co. Ltd., CF Industries Holdings Inc, Nutrien Ltd., Bunge Ltd., and Mosaic Company Ltd. It provides 65% exposure towards the domestic market. Additionally, the scheme stimulates investors’ returns through stock investments rooted in the S&P Global Agribusiness Index. 

Risks Involved in Aditya Birla Commodity Equities Funds

Investing in Aditya Birla Commodity Equities Fund involves higher risk than investing funds in stocks and bonds. The commodity fund markets are highly volatile and complex. To secure higher returns in the commodity fund category, you will need expertise and an understanding of commodity trading. Any market fluctuation will significantly affect the returns as the investment returns are directly linked to the commodity’s price. Commodities are freely traded, making them prone to global supply and demand. Additionally, commodity trading is uncertain, thus suitable for investors with high-risk tolerance capabilities. 

Return Potential of Aditya Birla Commodity Mutual Funds

As commodity funds have a huge customer demand and commercial value, the returns are derived from the commodity’s market performance. Aditya Birla Commodity Equities Fund returns clocked at 14.98% in the past year. Since its inception, Aditya Birla Commodity Mutual Funds has delivered annual returns of 8.55% on average. Simply put, the fund delivered returns equal to double the invested amount within three years. 

Who Should Invest in Aditya Birla Commodity Equities Fund?

Aditya Birla Commodity Equities Fund is highly suitable for investors seeking long-term capital growth. Individuals with an investment horizon of five years or longer who look forward to tax-efficient investment instruments should invest in Aditya Birla Commodity Mutual Funds. Try your hand on commodity funds only when you are well-versed with market trends and have a moderate to high-risk profile. 

Things To Consider Before Investing in Aditya Birla Commodity Mutual Funds

Initially, the investor must consider the Aditya Birla Commodity Equity Fund's performance. Secondly, consider the cost of funds, including expense ratio and exit load. Moreover, evaluate your risk tolerance capabilities. Determine whether you are ready to bear the involved risk and can cope with the losses in case of market fluctuations. Be clear with your investment objectives, and see whether the Aditya Birla Commodity Mutual Funds fulfil your investment objectives. 

Tax on Aditya Birla Commodity Equities Funds

When sold after one year tenure, it will fall into the Long Term Capital Gains (LTCG) category. Therefore, a 10% tax rate would be applicable when the gain surpasses the limit of one lakh. If the investor sold the assets within one year, it would fall in the Short Term Capital Gains (STCG) category. So, the applicable tax will be 15%, excluding cess or surcharge. 

Get your latest Credit Score, FREE

Mutual Funds Calculator

FAQs About Aditya Birla Sun Life Commodity Mutual Fund

How is Aditya Birla Commodity Mutual Fund doing?

As per the past performance, the Aditya Birla Commodity Mutual Funds are performing well. Additionally, Aditya Capital Commodity Mutual Fund returns clock at 14.98% in the past year.

Is Aditya Birla Commodity Mutual Fund Safe?

Aditya Birla Commodity Mutual Fund is safe for investment if you are an experienced investor and well-versed in the trading market.

Is it good to invest in equity funds?

Yes, it is good to invest in equity funds if you seek long-term capital gains. However, you must determine the best mutual fund based on your financial objectives and investment goals.

Mutual Funds Guide

Get in-depth knowledge about all things related to Mutual Funds and your finances

Mar 12, 2024

International Mutual Funds

\International mutual funds are hidden gems in investment. These ideally allow you to invest in different countries, empowering you to diversify the portfolio across various economies, currencies, and sectors. Internatio

Feb 29, 2024

​​10 Best SIP Plans for Rs. 1000

The need for disciplined and strategic investment is becoming increasingly apparent as the financial industry develops and changes. Investing in your future has never been easier or more accessible than with the 10 best

Feb 29, 2024

How to Invest in SIP

Mutual funds are the new piggy banks. Everyone looking to multiply their wealth via mutual funds ponders over one perennial question – how to invest in a SIP? While it might sound very complex and tedious, it actua

Feb 29, 2024

Best Investment Plan for 1 Year

 For those seeking relatively quick returns or managing financial goals within a limited timeframe, mutual funds could make a substantial difference. Mutual funds, essentially pools of money managed by professionals, pro

Feb 29, 2024

How to stop a Mutual Fund SIP?

Investing in mutual funds through a Systematic Investment Plan (SIP) is a widely embraced strategy for those looking to gradually build wealth with disciplined and consistent contributions. However, life’s uncertai

Feb 29, 2024

Withdrawing from Mutual Funds

When it comes to managing your investments, mutual funds are a popular choice for those looking to expand their portfolio and earn steady returns. However, there may come a time when you need to withdraw money from your

Feb 29, 2024

Flexi Cap Fund

Are you tired of the same old mutual funds that limit your investment options and returns? Do you want to explore the full potential of the stock market and invest in the best companies across all sizes and sectors? If y

Feb 29, 2024

STCG Tax on Mutual Fund

As an investor in mutual funds, you may be aware of the various benefits they offer, such as diversification, professional management, and liquidity. But do you also know about the tax implications of your mutual fund in

Feb 29, 2024

Conservative Hybrid Funds

A conservative hybrid fund is known as a low-risk investment option. The name gives you a fair idea of a conservative hybrid fund’s associated risk, offering a unique combination of safety, stability, and potential

Feb 29, 2024

Fund of Funds (FOFs)

Are you looking for a way to diversify your investments and access a variety of funds with different strategies and asset classes? If yes, then you might want to consider Fund of Funds (FOFs) as an option. FOFs are mutua

Feb 28, 2024

Expense Ratios: Calculations, Components, and Investment Impact

The expense ratio is one of the most critical yet often overlooked aspects of investing in mutual funds and ETFs. Whether you’re a seasoned investor or just starting to dip your toes into finance, understanding thi

Feb 28, 2024

Total Expense Ratio (TER)

The Total Expense Ratio (TER) is a significant indicator of the expenses associated with overseeing and running an investment fund, like a mutual fund or Exchange-Traded Fund (ETF). Calculated as a percentage of the fund

Feb 14, 2024

Indexation in Mutual Funds

‘Indexation’ is a pivotal term for investors during decision-making. It is also considered vital to reduce tax liabilities associated with investments, especially in debt mutual funds. Although calculating In

Feb 13, 2024

Yield to Maturity

Yield to Maturity (YTM) stands out as a pivotal concept among investors. It’s a term that often bounces around in financial discussions, yet its understanding remains elusive to many. Whether you’re a novice

Feb 07, 2024

What is Arbitrage Fund

Arbitrage funds are a type of investment strategy. I.e., the funds generate income by simultaneously buying and selling securities in various markets for different prices. As exploiting the price differences between the

Urban Money