A value-oriented long-term performer, the fund has seen a dramatic turnaround in its performance since Sonam Udasi took over its management in 2016. Being a diversified equity fund that can invest across sectors and the market cap spectrum, it is suitable to be a part of a long-term portfolio that aims to build wealth in the long run. Investment framework and portfolio tenets The fund follows a systematic approach to hunt for value. According to its framework, it is mandated to invest 70 per cent of the portfolio in stocks whose P/E ratio (for trailing 12-month period) is less than that of the Sensex. Thus the initial subset of the investment universe for this fund is arrived at by filtering based on P/E. We observe this in its portfolio valuation trends wherein it has traditionally been relatively low among its category peers and well below its benchmark as per its mandate (see graph below). However, since mid-2018, it has been slightly above the category average for the most part, though significantly lower than the broader benchmark. Further, there could also be companies poised for a sharp turnaround or a substantial improvement in profitability wherein the rolling P/E may not be truly representative of the company's valuations. The fund may also invest up to 30 of its net assets in such companies and up to 20 per cent in debt and money market inst
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