|Category:||Equity: Large & Mid Cap|
|Net Assets:||R 61 crore (As on Sep 30, 2013)|
|Expense:||2.85% (As on Sep 30, 2013)|
The scheme aims to provide medium to long term capital appreciation by investing predominantly in equity or equity related instruments, which offer high dividend yield.
Danesh Bharucha since Mar 2012
Investing in stocks with high dividend yields may be termed as a defensive strategy but it forms the bedrock for this fund which books profits regularly to take advantage of the volatility in the market. The universe of stocks is made up of those which have a dividend yield higher than that of Nifty.
Importantly, it remains fully invested all the times and in its entire history, allocation to debt has touched a maximum of 2 per cent and that too for a brief while.
The fundís breezy performance of previous 5 years came to a halt in 2012 when it lagged behind the category average by 8 per cent. Despite this, its 5-year annualised return of 12.05 per cent is way better than the category average of 6.67 per cent.
As far as the portfolio is concerned, it is churned frequently as there are only eight stocks that are consistently held by the fund since 2011. Of these, only Infosys and Tata Steel have brought in losses and that too in recent times. HUL has been one of its best picks since 2007, bringing in profits along with other quality large caps like ITC, Bajaj Auto, Tata Motors and TCS. Its highest single stock holding has been to ONGC and ITC which is around 8 per cent each.
The fundís mid cap bets such as Castrol India, IP Gas and Diviís have also paid off well by generating profits. HEG and Deepak Fertilisers & Petro, meanwhile, have been the small cap stars.
On the other hand, the fund has had its share of mistakes too. It incurred losses on some of its recent exits like BHEL, Bank of Baroda, Bajaj holdings & Investment, Allahabad Bank, Dena Bank and Blue Star which may be one of the reasons behind its dampened returns in 2012.
But its year to date returns reflect its usual resilience as it has fallen less than the category average.
The fund is not bound by any sectoral or market capitalisation considerations and hence has steered clear of volatility over the last few years. Itís a sturdy bet for uncertain times.