Aditya Birla Sun Life US Equity Passive FOF-Direct IDCW

Aditya Birla Sun Life US Equity Passive FOF-Direct IDCW ranks among the stronger performers in the Fund of Funds investing overseas category, backed by a 4-star rating. Consistent 3-year performance combined with a strong rating makes this one of the more credible options in its space. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 87/100.

Cost: At 0.74%, the expense ratio is roughly in line with the Fund of Funds investing overseas category average of 0.7% — cost isn't a standout factor either way for this fund.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a strong Sharpe ratio of 2.53 — the fund has generated solid returns relative to the volatility it exposed investors to. Separately, annualised volatility of 16.93% is fairly typical for actively managed equity funds.

Who should invest: This fund is best suited to investors whose goals and risk appetite align with a FoF fund. Given the Very High risk rating, this fund is not suited to short-term goals or investors who may need to exit within 2-3 years.