Fund managers Anand Radhakrishnan, Roshi Jain and Srikesh Nair strictly follow valuation parameters when it comes to choosing stocks.Valuation parameters, such as enterprise value, price-to-earnings growth ratio, forward price-to-sales ratio and discounted earnings per share, play a critical role in selecting companies for investments. Taking into account these parameters, the fund managers invest in companies which are poised for high growth in their respective sectors. This approach has been in favour of the scheme and it has performed stupendously well, especially over a long period of time.

At present, the scheme is largely invested in large-sized companies. Besides banking sector, the fund managers have shown keen interest in energy companies such as GAIL, BPCL and IOC. Factors such as attractive valuations and new capacities coming on board are a few key reasons for interest in these companies. This scheme is recommended for only long-term investors who have investment horizon of at least three years.

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