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New Thinking

The fund manager has shown the ability to think differently. The fund has expanded its stock portfolio and its small size makes it conducive to play around in the mid cap space

Birla as a fund house typically believes in having dual managers for each of its funds.

To the fund's credit it has never fallen below a 4 - star rating and has touched the 5-star status five times in its 17-month rating history.

The fund has tried out more than 178 stocks in the past 3 years. A look at its portfolio reveals that off late the fund has begun holding larger number of stocks from the earlier average of about 34 odd stocks, upping its portfolio composition to 45-50 stocks. This also corresponds to the increase in the corpus of the fund which has risen by 76 per cent since July 2006. Even so the fund continues to remain rather small at Rs 228 crore, which makes it more conducive to play around in the mid cap space.

The fund manager has shown a tendency to be different; it is one of the few funds that have moved away from financial and technology sector at a time when these sectors have emerged as the favourite of other funds.

The fund manager does churn the portfolio considerably and frequently tries out new stocks. Having said that one does see some stocks that are held for a period of 30 odd months at a stretch. There is a discernible churn in the financial sector and technology portfolio, with the fund manager being quite aggressive here.

The fund does not display characteristics of being highly aggressive especially given the amount of diversification. There is a tendency to balance out risks assumed by adopting a mélange of strategies.