Religare Invesco Tax Plan

5 Value Research
Change from previous, NAV as on Mar 26, 2015
Category: Equity: Tax Planning
Assets: R 242 crore (As on Feb 28, 2015)
Expense: 2.83% (As on Sep 30, 2014)
Investment Objective

The scheme aims to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities. It intends to invest across market capand sectors utilizing bottom up approach. It will aim to have concentrated well researched portfolio, which would be around 20 - 50 stocks.

Fund Managers
+ Vetri Subramaniam since Dec 2008
+ Vinay Paharia since Jun 2010
As on Mar 27, 2014

Even though the fund currently has a large cap bias with 52 per cent allocation, it hasn't been hesitant about being heavily invested in smaller companies. In the past too, the mid-cap and small-cap allocation have been high. Its relatively small size makes an effective mid-cap strategy viable. Sectors that have dominated the portfolio are Energy, financials, FMCG, services and technology which account for around 65 per cent. The fund stays below the 50-stock mark for its portfolio. Says Religare CIO and veteran fund manager Vetri Subramaniam, “The fund is equally balanced between large-caps and midcaps. We look to benefit from growth opportunities by investing in young companies with a patient mindset. The portfolio always stays well diversified. We prefer high quality businesses with healthy growth prospects. We do not take tactical positions in this fund and try to minimise turnover.”

The fund has generated above average returns since its launch in 2007. Only in 2012 did it fall behind but only be a small margin. It proved to be quite resilient in the market downturns of 2008 as well as 2011, containing its decline better than the category average. Its large cap allocation and higher exposure to defensive sectors aided the fund during that time period. It has also managed to perform well even during rising markets by surpassing most of its peers in terms of returns. It has always been part of the top two quartiles and one of the top performing funds in its category.

Why invest?
Despite its relatively short history, the consistent outperformance it has shown makes it a good choice for a tax-saving fund.