This fund gained a foothold after the Robeco group bought stake in Canbank Mutual Fund. It aims at a balanced portfolio of large- and mid-cap stocks with a growth style of investing. The equity allocation is ranged between 80-100 per cent.
After a good show in 2007, it fell the least in 2008 despite the cash/debt allocation averaging at 11 per cent (peak at 21 per cent). This is well within its investment mandate. It succeeded on investing in the right companies and the fund manager aligned the portfolio to capitalise on domestic demand recovery. This was based on the fiscal stimulus, monetary easing and strength of favourable demographics.
The scheme rallied in 2009 due to its banking allocation, increased mid-cap exposure and bets on the likes of L&T, BHEL, GAIL, Gujarat State Petronet, HPCL and BPCL. This year, also, it has beaten the category average by a huge margin.
A small asset base helped the scheme take advantage of flexibility to move in and out of sectors/stocks. It buys companies with secular growth opportunities and an objective of staying invested for longer periods of time.
The fund focuses on companies with superior growth. Though it does not shirk smaller fare, the risk-reward profile has led to a large-cap tilt. Excellent performance numbers without undue risk and a compact, diversified portfolio makes it a strong contender.
