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Swift Moves

Small size makes the fund conducive to bet aggressively on mid-caps. However the fund plays safe with ample amount of diversification

This fund from the stable of Birla Sunlife has never fallen below a 4-star rating and has touched the 5-star status seven times in its 19-month rating history. Over the years, the fund has started holding larger number of stocks. From around 30 in 2003 the average number of stocks has gone up to 40-44 in the past 12 months. The fund has tried out more than 178 stocks over the past three years.

This also corresponds to the increase in the corpus of the fund which has risen by 71 per cent in the last one year. Even so the fund continues to remain rather small at Rs 283 crore, which makes it more conducive to play around in the mid-cap space. The fund does not display characteristics of being highly aggressive, especially given the amount of diversification. There is a tendency to balance out risks assumed by adopting a mélange of strategies.

The fund manager has shown a tendency to be different; it is one of the few funds that have moved away from technology sector at a time when these sectors have emerged as the favorite of other funds.

Over the past six months, the fund has increased exposure in financial services and metals sectors. Exposure in the metal and metal products calls special attention. The share of this sector in the portfolio has gone up from 2 per cent in October 2006 to almost 13.68 per cent.

The fund manager does churn the portfolio considerably and frequently tries out new stocks. Having said that, one does see some stocks that are held for a period of 30 odd months at a stretch. There is a discernible churn in the financial sector and technology portfolio, with the fund manager being quite aggressive here.