This is a large-cap fund with about 65 per cent exposure in large-caps and rest in mid-caps. The fund manager takes a 3- to 5-year investment timeframe with investments across market capitalisation. Investments are in stocks with potential of long-term growth and appreciation. There is no restriction on how much can be invested in a stock or sector, which occasionally leads to high allocation to a single stock or sector.

The fund management style is slightly contrarian and value-focussed rather than momentum-focussed. Investments are mostly in stocks that are accumulated when the valuations are attractive. The fund manager also exits stocks which have outperformed the benchmark significantly before they move to the overvalued zone.

Performance

This fund handsomely rewards investors who stay invested for long. In recent years, it has done well by maintaining a portfolio of quality large-cap stocks such as Infosys, ICICI Bank and Reliance Industries. This has stabilised its performance and helped post better returns. In 2011, the fund was able to curtail the fall with its aggressive bets in healthcare sector on stocks like Cipla and Divi's Laboratories, which helped cushion the fall. In 2012, its performance improved with mid-cap bets such as Orient Paper & Industries, Precot Meridian and Cadila Healthcare.

The fund manager stays well-invested in all market cycles with cash holdings rarely exceeding 10 per cent. A diversified portfolio with the large-cap tilt has helped bring stability and capitalise on opportunities present across market caps.

Investments in sectors such as energy, engineering, financial and healthcare account for over 60 per cent of the assets and have enabled this fund to do well. In years when the markets are in a bear phase, the fund manages to curtail the fall with its aggressive bets in healthcare sector. However, investors should be cautious of the high turnover ratio of this fund.