This fund has performed consistently despite frequent change of fund managers. Over time, it has either beaten the category average (seven years) or performed in-line (two years). But, 2009 turned out to be a blip in its history. It delivered 72 per cent, making it a bottom quartile performer, after being in the top (2008).
The fund invests in stocks across market-cap, with a 3 to 5-year view, sizeable allocation to large-caps, which is the anchor of the portfolio.
Deep cash calls came to its rescue in 2008. There were times when the equity exposure dropped to 63 per cent (the balance being in debt+cash). This helped it show tremendous resilience and shed only 47.58 per cent (category average = minus 56 per cent). The low equity exposure continued in 2009. It averaged at 76 per cent in the first three months and once the rally began, the fund rapidly picked stocks and starting April 2009, its equity exposure rose to 94 per cent. Yet, it delivered only 72 per cent in 2009 (category average = 82 per cent). Even the last six months it has not been very impressive when compared to the category. But, it has built a competitive track record over the long run; 5-year annualised return at 24 per cent.
Despite showing a preference for midand small-caps in its earlier days, it now has a distinct preference for largecaps. This did not change in 2009, even when smaller companies rallied. The fund may look slightly concentrated with 58 per cent allocation to the top three sectors over last one year (category average = 43 per cent) but single stock exposure has rarely crossed six per cent.
