This tiny fund packs quite a punch. After an absolutely dismal 2006, it shot to prominence in the bull run of 2007 and 2009. Its fall in 2008 was in-line with the category average.
Fund's philosophy is to buy stocks with asecular growth story. It focuses on longterm growth opportunities in India and not market direction.
In December 2008, when the fund's exposure to cash and debt was high amongst equity funds, it was exposed 83 per cent to equity, which rose to 88 per cent over the next two months. By March 2009, it was at 90 per cent and by May, it was fully invested (96 per cent). This put the fund in an enviable position.
Despite the agility a small fund offers, this fund opts for a large-cap bent, refrains from frequent churning and tilts towards a buy-and-hold approach.
There has been a tilt in the fund's portfolio from asset creators to asset owners. The fund manager is cautious on infrastructure as it is a very long-term growth story and the sector is richly valued. Hence, stocks like L&T are out but GAIL and Mundra Port are in.
The corpus being small, the fund goes with a portfolio of around 35 stocks, which are fairly diversified relative to size. The allocation of 58 per cent to the top 3 sectors is in-line with the category average.