We like this fund for its diversification, bluechip stock selection and ability to weather different market cycles to consistently generate returns that are close to its benchmark, the Sensex.
Performance driver: Investments in fundamentally-strong but undervalued large-cap companies makes it an ideal bet during volatile markets and bear phases. The fund adopts a mix of top-down and bottom-up stock picking strategy. Its mandate to use the contrarian play has also worked as was visible in 2008, when the fund was underweight in most sectors barring FMCG.
Risk: No outstanding returns in years when the markets rally.
Why invest? Consistent performance over the past 14 years lends solidity to the fund, considering its ability to match the Sensex returns regularly.