With a focus on companies drawn from BSE 200 Index as well as 200 largest capitalised companies in India, the fund has voted for large cap bluechip portfolio. That's just half the job well done, for the fund continues to be an average performer.
Companies drawn from the BSE 200 offer bluechip, large cap, liquid and highly traded stocks. Since the fund benchmarks itself to the BSE 200 index and tries to consistently beat this Index, weightings are controlled based on their weightings in the Index. With this the fund has stayed largely diversified with individual stock exposure largely staying within limits of prudence.
Managed in line with the changes in the changes in its chosen index, the fund has actively rotated across sectors. While pitching itself in favour of growth stocks of consumer, pharma and technology the fund was overweight on the former two in 1999. However, beginning 2000 the fund held a restrained focus on technology stocks - apportioning a third of its corpus to these stocks, even while continuing with its growth pitch. Even while the diversification saw the fund post only nominal gains in 1999in line with the index, the fund gained in 2000 by losing less. In recent times the portfolio complexion has changed in favour of pharma, consumner and economy counters at the expense of infotech stocks.
With a return since launch of 12.48%, Zurich India Top 200 has outperformed its index, while still remaining an average performer in its category. These insipid returns has seen the fund lose out on its investment mandate with a heavy redemption in September 2000. Even though ZIT 200 carries a lower risk quotient with a quality conscious diversified portfolio, its active management is yet to see it outperform its category