This opportunities fund was indeed launched at an opportune time, when the Indian equity markets were just starting off on their long uphill climb.
Over the years, the fund has not been a trail-blazer, but an above average performer which goes about doing its business without taking too many risks.
It started off with under Rs 5 crore of assets in March 2003 and performed exceedingly well in the first few quarters of its life. During the quarter ended December 2003, it delivered a whopping 49 per cent to beat an average peer by a margin of over 12 per cent. As a result, its assets surged phenomenally in its first year to cross Rs 230 crore by the end of March 2004. Since then, they have grown at a steady pace to Rs 482 crore by January 2007.
The fund spreads its assets well across large and mid-cap stocks, though the latter have an upper hand. It started off with an aggressive posture and the top five holdings accounted for almost a third of its portfolio. But that was short-lived as the fund toned its aggression down by diversifying. At present, the top five stocks account for just 18.50 per cent of assets. As a result, the number of stocks in the portfolio has also more than doubled from under 30 in its initial months to over 60 these days.
Even at the sectoral level, the fund avoids taking concentrated bets. Technology has long been its favourite sector (currently accounting for 19.34 per cent of the portfolio). It is also bullish upon the booming infrastructure theme, as basic industries and construction sectors both consume over 13 per cent of the portfolio. As many as five cement stocks figure in its portfolio. Of late, the fund has exited FMCG stocks and diverted this money towards energy stocks.
This article was originally published on February 28, 2007.
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