This fund maintains a high equity allocation, which goes as high as 74 per cent on most occasions. The fund manager follows a multi-cap approach when investing in stocks, with mid- and small-cap exposure above 40 per cent. The blend of mid-cap stocks but non-concentrated holdings in sectors makes this fund aggressive. It also actively manages the equity-debt allocation and closely sticks to the allocation. The fund manager does not take concentrated exposure in stocks or sectors. Individual sectors rarely cross 12-13 per cent of the portfolio and in case of stocks the allocation is rarely above 5 per cent. The debt allocation is conservative, but is actively managed in quality papers and highly-rated securities.

Performance

After a tumultuous run in the initial years, this fund found its calling in 2002. Since then, it has managed to have a fairly good performance, barring 2008 when it could not better its benchmark. The fund has done well on most instances in the past 10 years, and was a top-quartile fund in 2009. This fund makes most of the market rallies, and is equally able to manage the fall during the bear phases. The equity portfolio, dominant in diversified, energy, financial and technology, has aided the performance over the past few years.

This fund is the most disciplined in the category and sticks closest to its equity-debt ratio with an average 74 per cent equity exposure. In the past three years, the allocation has been between 72 and 76 per cent with just 3 per cent range, which was least in the category.

The fund was resilient during the market downturn of 2011 when it had a fall of 12.02 per cent compared to the 15.98 per cent fall in the category average returns. Currently, healthcare and FMCG have also been among its dominant sectors, which has aided the performance. Consistent investments in quality large-cap stocks such as L&T, Infosys, Reliance, SBI, BHEL, M&M, HUL, ICICI and Crompton Greaves reflects in the performance.

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