If you want a fund that might not be in the limelight at all times, but will outshine its peers when it really matters, then this ones the right choice. In 2008, of the 193 equity diversified funds that form its category, it shed the third least amount -41.82 per cent (category average 50.95 per cent).
The fund not only stays afloat when everyone else is struggling, it also manages to mirror the category average. This is the funds inherent character: protects the downside and earns at par with the category. Its two- and three-year returns are better than the category's.
The fund manager prefers to keep a small and compact portfolio, with liquid contributing the most. He actively churns the portfolio, going in and out of stocks and sectors. Hell take aggressive bets, make contrarian calls, but ensure he doesn't compromise on quality. The downside protection abilities of the fund is a testimony.
However, the fund lags when it comes to doing well with stocks other than the top 70. Again, things don't look too bad when you look at the portfolio over a market cycle. On the way up, the funds beta tends to be 1, but is cut on the way down.
Overall, the fund is good for both first time and seasoned investors. As it sheds less in bear markets, with a steady performance, makes it a worthy pick.
