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Alliance Equity

Its daring and is a winner in its category! Once the markets bounce back, the fund's penchant for value stocks and a nimble footed strategy is likely to deliver sizzling returns.

With a blistering 32% return in the last three years Alliance Equity is clearly a performance leader among the funds. And it is a performance driven by taking higher risks in quest of commensurately higher returns. Of course, it's the bull-run that coincided with the launch of the fund that's really the catalyst to its performance. But the fact that other funds launched around the same time have turned in performances not half as rewarding for their investors, shows that Alliance Equity has been smarter in capitalising on the market upswing. Its done that by deploying a strategy of judiciously picking up stocks of companies that sustain growth through internal accruals, even if it means paying a premium for the stock.

Consequent to this strategy, IT and telecom stocks have become a part of the fund's core portfolio accounting for an average 57% of the assets last year. But with uncertainty ruling the markets, the allocation has now been pared down to a level of 27%. The fund has also avoided stock-specific risks, never holding beyond 10% in a single stock.

These safeguards as well as some savvy trading have also ensured that despite a tech-heavy portfolio, Alliance Equity has managed to limit the damage of the technology plunge in 2000. Lately, even as the fund has regrouped its portfolio in favor of other sectors in the face of severe volatility, it is bullish on the growth theme.

Its quality pickings have already placed Alliance Equity among the top performers in the market. With a penchant for value stocks and a nimble-footed management, the fund is likely to bounce back when markets revive.