In its history of around 11 years, the fund has delivered mixed performances. The allocation to mid-and smallcaps led to some exceptionally good years, but was also hit harder during the market downturns. In 2009, it grabbed the top slot with a return of 112 per cent.
The portfolio is a mix of large- and medium-sized stocks. This fund is not alarge-cap one, though there will be periods when such stocks dominate.
In 2007, its sector moves worked against it. With around a fifth of its portfolio in FMCG and healthcare, it remained underweight in metals and energy. This was because the fund manager felt stocks in the oil and gas sector were overvalued, while that of FMCG and pharma were undervalued. But when the downfall took place in 2008, the fund's fall of minus 56 per cent was around the category average. The sector bets and increased exposure to large-caps helped; the cash and debt exposure averaged around just six per cent. So, when the market began to rally in 2009, the fund was in a good position to hop on to it.
The portfolio is well diversified across 65 stocks, with the top five accounting for 22 per cent of the portfolio. The individual sector allocation is restricted to 20 per cent and does not exceed five per cent for individual stock holdings, barring a few large-cap names. Half the portfolio is currently in large-caps, aggressive mid-cap and small-cap bets also take place. As a result, it can get hit harder during market downturns.
