In 2009, this fund could not take advantage of the mid-cap rally because of its mandate to have a large-cap bias. It had around 85 per cent in large-caps, which didn't allow it to earn more than it did, but provided stability. It may not give you earth-shattering returns, but it will definitely not let you down in the long-term.
A perfect core holding, this fund is a stable performer. It has shown its mettle in bull and bear phases. Its three- and five-year returns have been 12 and 25 per cent, respectively. During bad times, the fund has managed to curtail its losses effectively. In the bear phase of 2008, it shed just 45.54 per cent, against the category's loss of 50.95 per cent. These numbers show that this fund can be the core of any portfolio.
A balanced large-cap allocation defines the fund's portfolio. The fund manager does not get influenced by sector movements and refrains from investing too much into any particular sector, even during the best times. At the same time, individual stocks never cross the 10 per cent mark. However, even with this approach, the manager gets the best out of hot sectors, while ensuring asudden downfall wont affect. But he goes for opportunities. Over the past year, the fund has averaged around 39 stocks, 25 per cent of it accounted for by the top five holdings. Overall, the portfolio is strong on quality and liquidity.
A steady large-cap fund, good at what its supposed to do.
