Using GARP to Evaluate Opportunities

Mahesh Patil, fund manager, Birla Sun Life Frontline Equity, talks about the investment strategy of the fund and gives his insights on what has made it perform consistently over the past few years. What is the Investment strategy for the fund? (Including internal rules investment universe, capitalization orientation and on maximum cash allocation) BSL Frontline Equity Fund (FEF) is a large-cap bias fund and it seeks to maintain its sectoral weightage within a tight range of the sectoral allocation of its benchmark index (BSE 200). The range is +/- 25% relative to benchmark allocations or 3% absolute, whichever is higher. However, the manager is willing to deviate from the index in individual stock holdings. FEF also generally seeks to maintain at maximum upto 10% cash under normal circumstances, though the SID allows it upto a maximum of 25% of NAV in debt & other money market instruments. The fund's core portfolio (60-70%) will be constitute of very long-term holdings which are stable in nature, and the