The fund is one of the most consistent in the large and mid-cap category, beating its peers and benchmark consistently for many years. This has also made it popular among investors bringing in more inflows persistently into the fund for more than a decade now. Both these factors have made it the largest fund in the category. The fund's mandate to have 35 per cent of its allocation in mid-cap companies at all times may make it slightly more aggressive than other growth category peers. However, it is a suitable choice to be among the core holdings of a long-term portfolio which aims to build wealth in the long run. Portfolio management - framework and style The fund's investment framework aims to participate in high-quality businesses, but only up to a reasonable price (i.e., growth at a reasonable price or GARP), and hold the same over an extended period. Valuation of a company's stock is important for the fund as it aims to invest only in those stocks wherein it perceives its value is more than the market price, ensuring enough 'margin of safety'. The fund consciously avoids companies with suboptimal ROCE and lack of quality management regarding governance, capital allocation, etc. It also aims to avoid companies whose operating profit is less than Rs 100 crore. This value consciousness can be seen particularly after being categorised as a large and mid-cap fund. The fund's portfolio P/E has consistently been lower than its category average over the last three years (see graph below). Before SEBI's re-categoris
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