|Category:||Equity: Large & Mid Cap|
|Net Assets:||R 3,573 crore (As on Dec 31, 2013)|
|Expense:||2.24% (As on Sep 30, 2013)|
The scheme aims to invest primarily in equities and for defensive consideration in fixed income securities including money market instruments with the aim of generating capital appreciation. The actual percentage of investments in will be decided after considering the prevailing market and economic conditions.
Mittul Kalawadia since Feb 2012
Sankaran Naren since Feb 2012
We like this fund for not getting trampled during downturns.
The cash and equity allocation of the fund is decided by the price to book value-based algorithm, which is done on a daily basis.
Since contra calls form a part of investing style, the fund manager does hold stocks in out-of-favour sectors. Its exposure to energy, metals, chemicals and communication exceeds benchmark allocation by more than 5 per cent. Similarly, it is underweight on financial sector vis-a-vis the benchmark as its exposure has usually been in the range of 10 to 15 per cent and occasionally crossing 20 per cent. Since the fund manager is not bound by a particular style of investing -- whether it is growth, value or contra -- he has the discretion to take aggressive or defensive asset calls, based on market conditions. Reliance Industries and Texmaco Infrastructure and Holdings have been consistently held for more than 8 years.
Also, the fund does not shy away from taking cash calls as its cash allocation has sometimes gone above 20 per cent. Its average equity allocation since its launch is 85 per cent.
In 2008 it fell by 44 per cent compared to category's 54.79 per cent. Again in 2011, it was able to contain the decline better than the category average by 3 per cent. On the downside, it fails to show the same prowess during a rising market. It has given a mixed performance during market upturns in 2010 and 2012 and did only marginally better than the category average. But, it has managed to give higher returns than the category average in over 6 years since its inception. And has also managed to beat the benchmark always since its launch except 2007.
Its long term results reflect consistent performance as its 5-year annualised returns of 7.64 per cent are slightly better than the category average of 5.19 per cent.
The fund is known for its agility and its composition changes according to the market volatility; helping it fall less during downturns and also post decent gains during upturns. All this has helped it emerge as the second-largest fund in its category.