Compare this fund with those that focus on the infrastructure theme and it is a middle-of-the-road performer. But increase the universe to include all diversified equity schemes and the fund's performance really impresses.
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. This mandate enables fund manager Anup Maheshwari to tap into sectors that core infrastructure funds do not - FMCG, Textiles, Media & Entertainment, Consumer Durables. So it's not surprising to find stocks like TV Today Network, Adlabs Films, Century Textiles, Bombay Dyeing and Bajaj Electricals. From June 2004 to July 2005 it was also invested in Healthcare (average of around 9 per cent), during which time the BSE Healthcare index delivered 23 per cent. The allocation has now dropped to 1 per cent which comprises of two stocks: Astrazeneca Pharma India and Pfizer.
There appears to be continuity in holdings in a significant portion of the portfolio while the balance is frequently churned. Out of the universe of 171 stocks invested in since inception (May 2004), 51 have appeared for less than six months. Stocks like Reliance Industries, ICICI Bank, L&T and BHEL have been long-time favourites. Indian Bank, Allahabad Bank, Canara Bank, Yes Bank, Octav Investments, Future Capital Holdings, Indo Tech Transformers, NRB Bearings, PFC, Unitech and Unity Infraprojects are some that made an appearance just once.
This large-cap tilted fund appears bloated with 60 stocks, but is an improvement from 72 (September 2007). The broad investment mandate, large-cap tilt, intense diversification and attractive returns have resulted in its asset base rise by 254 per cent last year.