Though not a leader in its category, the fund has put up a respectable performance
This fund will not typically show up as a leader of its category, but is a respectable offering.
The fund started off with a bang before turning out to be a fairly average performer. Once Sridhar took over, it put up a respectable performance in 2007 and 2008. But in 2009, it did deliver less than the category average and the benchmark.
Its size and name would imply a portfolio laded with mid caps. In reality, nothing could be more misleading. While it resembled a mid-cap offering in its initial years, that's no more the case. This fund has displayed a penchant for larger stocks and over the past three years the large-cap allocation has averaged around 85 per cent of the fund's portfolio and has not dipped below 65 per cent in any month.
Typical to Sridhar's style, he takes huge cash positions should the need arise. There have been occasions where the allocation has even exceeded the mandated 20 per cent, touching a maximum of 35.36 per cent (October 2008). That helped in cushioning the fall that year. In the bear run (January 8, 2008 - March 9, 2009), it curtailed losses to 45 per cent (category average: -53%).
Thanks to the size, the fund manager aggressively churns his portfolio, with respect to stocks and sector preferences. Although the portfolio looks slightly concentrated with around 30 stocks (1-year average), rarely has any stock cornered more than 7 per cent of the fund's portfolio.
