In the last five years, this fund has been the best performer in its category with an annualised return of 27 per cent (as on 31 July).
In the bear phase of 2008, it shed 45 per cent, 11 per cent less than its benchmark and 8 per cent less than the category average. This, without high debt or cash calls.
In the bull run of 2009, this fund beat the category by a staggering 14 per cent. Lower cash levels, overweight on automobiles and banking (raised exposure to State Bank of India which jumped) and underweight on power utilities and energy (cut exposure to RIL which underperformed) helped.
The scheme was an average performer in 2006 and 2007. High exposure to defensives in 2006 and offloading energy in 2007 hit the fund. Higher exposure to financials instead of metals, construction turned out to be wrong in 2007. But investors who stuck around were rewarded in the following years.
The fund primarily invests in companies that comprise the BSE 200 index. But, the fund can invest in the top 200 firms by market capitalisation on the Bombay Stock Exchange (BSE), also.
The fund sticks has managed to hold a consistently qualitative portfolio. It invests in quality businesses, keeps away from richly valued investments to the extent viable and remains diversified. Its long-term performance under a highly skilled fund manager is what makes this scheme highly suitable for all kinds of investors.
