|Category:||Equity: Tax Planning|
|Net Assets:||R 560 crore (As on Sep 30, 2013)|
|Expense:||2.65% (As on Sep 30, 2013)|
The scheme seeks to achieve long term capital appreciation by predominantly investing in equities. It also offers tax benefits under Section 80C.
Krishna Sanghvi since Sep 2012
This fund is consistent in maintaining a well-diversified portfolio with perfect stock selection that has made it a top performer in the category.
This fund reflects a large- and mid-cap growth orientation with the flexibility to invest in small-cap stocks at opportune times. Further, the fund follows a combination of the top-down and bottom-up approach. The fund manager takes a view on sectors that look good and then picks stocks which have the potential to outperform. Stocks are selected based on the fundamentals of the business, the industry structure, the quality of management, sensitivity to economic factors, the financial strength of the company and the key earnings drivers. The fund allocates significantly to sectors like financial and technology, with the top-5 sectors making up for about 65 per cent exposure. The fund is managed actively with just SBI and Airtel finding place in the portfolio for long durations.
For one of the oldest funds in the category, the fund came on its own in 2006 and has not looked back since then. The partnership with Robeco in 2007 has also helped. In 2008, the fund did well with a high exposure to cash, which helped it benefit from the market turnaround in 2009 to be the second best fund that year. Since then this fund has performed well in both bull and bear phases.
Energy, financial and technology have been part of the top-5 sectors over the past five years, which has aided in its superior performance. Its favourite stock picks include BHEL, Reliance Industries, Infosys, L&T, ITC, SBI and Airtel. Though it has not held any of them for more than 3-3.5 years, with Airtel and SBI being the exception.
The fund manager has maintained a compact portfolio without compromising on diversification. Currently, its highest allocation is to giant cap stocks like HDFC Bank, ICICI Bank, Infosys and ITC. All these actions have resulted in the fund becoming a regular top quartile performer over the past four years. However, a cause of concern is the frequent change in fund management in recent years.
The fund consistently beats its benchmark, irrespective of the timing of one's investment, making it a good addition to a core portfolio.