Not a great performer initially, it stole the show in 2002 with a return of 74.58 per cent (category average: 19.43 per cent). From a ranking of 23, it shot to number one position. Skeptics who wrote it off took note when the fund delivered 155.16 per cent against the category average of 111.62 per cent.
Just when the fund managed to wow everyone, it delivered only 19.81 per cent in 2004 (category average: 25.84 per cent). In 2005, it performed better at 53.47 per cent (category average: 46.70 per cent). These volatile returns are typical of the fund. For instance in 2002 it delivered more than the category average in the first two quarters, underperformed in the third and marginally beat the category average in the fourth. In 2003, it outperformed the category average but managed to do so in only two quarters of 2004.
Though mid-caps were responsible for the performance in those two years, the fund is not hell bent on only investing in them. Mid-2002, the small- and mid-cap allocation at one time moved higher than 80 per cent. Last year, the fund has averaged around 30 per cent in small- and mid-cap allocation.
Automobiles has been the topmost sector the entire year in 2006. From a peak of 19.47 per cent of the portfolio (July 2006), it is now 13.04 per cent (January 2007). Diversified across 34 stocks, the top three sectors account for around 37.90 per cent of the portfolio with the top-most stock, Infosys Technologies, at 5.60 per cent.
The fund is known to have a relatively higher cash allocation. In 2002 and 2003, it averaged around 23 per cent (37.72 per cent- October 2002; 51.35 per cent -April 2003).
Last year, the average cash allocation of the fund was 9 per cent (15.73 per cent - January 2006).
As on February 7, 2007, the fund beat the category average in its one-year, two-year and three-year returns. Its five-year returns are 61.41 per cent (category average: 43.14 per cent).
This article was originally published on February 08, 2007.
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