This multi-cap fund's long-term record has been patchy, but there is a sharp improvement in returns, which beat the benchmark and category since 2012. A 3-year trailing return of 26.4 per cent has lifted the fund's rating to 4 stars in the last few months.

Strategy: A distinct tilt towards large-cap stocks (60-65 per cent of assets) as compared to the peers in the last five years--the differential is as high as 10-11 per cent in some months--and a very diversified approach are the key features of this fund. Despite a modest R396 crore assets, the fund owns 65 stocks. The fund tends to invest in companies with superior management quality, distinct and sustainable competitive advantage, good growth prospects and strong financial strength. The fund likes to own companies under-owned by institutional investors. 'As a fund house, we are very target-price oriented and while we do take a long-term view of companies, we are happy booking profits at least in part, if our target prices are achieved with no meaningful revision in fundamentals,' P. V. K. Mohan, the fund manager explained. The improvement in the fund's performance since 2012 coincides with a change in the fund manager.

Performance: This fund's annual returns since 2001 don't appear very impressive, but it has pulled up its socks since 2012 to significantly outperform. An early move into cyclicals has helped returns in the last one year. Its trailing three- and one-year returns beat the benchmark returns by over 9 per cent.

What we don't like: The improvement in returns has been recent and the fund is yet to prove itself in a bear market.

Why invest? The sharp pick-up in returns post-manager change is heartening. But exposures can be kept small and ramped up as the fund builds a track record over an entire market cycle.