The fund's name may convey an aggressive offering, but in reality it presents a different image.
An acronym for The Infrastructure Growth and Economic Reforms, the fund focuses on sectors that are likely to prosper from growth related to economic reforms and infrastructure development. Despite platitudes about how you can never time the market, perfect launch timing does wonders for the perception of a mutual fund. And T.I.G.E.R is a prime example.
Launched three years ago, the fund capitalised on the infrastructure run. But unlike other infrastructure offerings, its broader mandate has enabled it to tap into sectors that core infrastructure funds do not - healthcare, FMCG, textiles.
The portfolio is, probably, too well diversified and this year averaged at around 65 stocks. RIL, the largest holding, is currently at less than 6 per cent and the rest are all below 4 per cent. One can expect such diversification from a mid-cap fund, but this is surprising from a predominantly large-cap offering. Nevertheless, its tilt towards growth investing has enabled it to deliver superior returns.
The fund's most prominent holding - RIL - has been there since inception, while around 20 stocks have been held continuously for at least 30 months. But when looked in perspective, of the 60-odd stocks in the portfolio, it is not significant enough to conclude that the manager adheres to a buy-and-hold strategy. In fact, on the other end of the spectrum are 48 stocks that have stayed on for six months or less. Jet Airways was one stock that played hide-and-seek with the portfolio by appearing, disappearing and appearing again before making an exit.
The rankings, as on August 10, 2007, show the fund in a very favourable light. And considering its broad investment mandate, it won't run out of good ideas. This fund should keep rolling for a while.
This article was originally published on September 11, 2007.
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