This fund follows a go-anywhere strategy, with no market-cap, sector and style bias. However, on close analysis, there is a large-cap bias in the portfolio. The largecap exposure has ranged from 57 to 70 per cent and has averaged 64 per cent since the fund's launch. And, despite claims of no sector bias, there is preference for financial services.
The 20 per cent allocation to this sector since inception stood at 27 per cent in September. This has resulted in the fund being a stable performer, with an average performance during market rallies and has managed to shield investors during market falls.
The fund has largely stayed away from metals and construction, missing out on the 2007 and 2009 rally in these sectors. Fund manager, Sandeep Kothari attributes the absence of metals to high valuations based on balance sheets of some of the larger players.
The fund largely follows a buy and hold strategy, with seven stocks, Larsen &Toubro, Reliance Industries, BHEL, HDFC Bank, ICICI Bank, SBI and Infosys Technologies finding a place in the portfolio since inception.
The large-cap tilt and higher allocation to the financial services sector makes the fund sturdy, but it also means that investors have to be content with an average performance during market rallies.
