Investment Strategy:
This fund invests in infrastructure companies across market capitalization, but focuses mostly on large cap stocks. In the past three years, large cap stocks on an average account for about 66% of the portfolio, midcap stocks account for about 7% of the portfolio, small cap stocks account for about 6% of the portfolio and cash holdings account for 8.0% of the portfolio. The fund uses derivatives quite often. The average holding of the derivatives is about 5% of the portfolio. The fund also had exposure to debt securities on an average of 18% of the portfolio from January 2008 to October 2008, but since November 2008, this fund has had no exposure to debt securities.
Banking, Electric Equipment, Telecommunication, Power and Oil Exploration are the important sectors for this portfolio. These five sectors have accounted for on an average 40% of the portfolio across the three year period and about 52% of the portfolio in 2010. Banking sector has seen high allocation in the portfolio; from 5.35% in December 2007 to 18.8% in December 2010.
Asset Size:
The fund's AUM is around Rs. 3009 crore as at 31 March 2011.
Performance:
This fund is one of the best performing infrastructure funds in India and also the best performing infrastructure fund on our platform over a 5 year period (31 December 2005 to 31 December 2010).
As of 31 December 2010, this fund has outperformed its benchmark, the S&P CNX NIFTY Index across 3 year, 5 year and since inception periods but has underperformed its benchmark for the past 1 year and six months period. Infrastructure was one of the bottom performing sectors for 2010. Over a 1 year period, this fund has given 9.98% while its benchmark has given 17.95% and has given annualized returns of 22.29% over a 5 year period in comparison to 16.66% of the benchmark over the same 5 year period.
