So, if you are looking for a high-flying performer, then you are at the wrong counter. Sundaram Growth, a risk averse, middle of the road strategy offers sober yet steady returns on the equity brook
06-Jun-2001 •Research Desk
Unlike its peers, the fund does not focus on turning in returns aggressively. Instead the fund seeks rather sober and steadier innings, with a well-diversified flavour.
The fund's investment strategy centers on negotiating pitfalls rather than achieving phenomenal success. The fund follows a long-term approach to investing with an investment horizon of 18-24 months. Here the fund strictly adheres to its limits on individual stocks not indulging beyond 5-8%. This explains the large number of marginal holdings in the portfolio. More importantly, the fund has focussed on large cap liquid stocks, thus steering clear of momemtum plays altogether.
Further, the fund has reined in on its sectoral allocation maintaining a well-diversified flavour. The fund had a distinct taste for auto, diversified and FMCG stocks through 1999. Even while this was pitched in favour of the technology counters, this was well within limits of prudence at 30%. In these volatile times, the fund has further pruned its technology stance to 16%.
With its investment philosophy well in place, the fund delivered a sober return of 108%, to outperform the index in 1999. While this pales in comparison to its aggressive peers, the prudence came in handy when the fund survived the volatile 2000 better by shedding 21% - and thus outperformed its peers.
So, if you are looking for a high-flying performer, then you are at the wrong counter. Sundaram Growth , a risk averse, middle of the road strategy offers sober yet steady returns on the equity brook.