BIRLA SUN LIFE MID-CAP PLAN A
It started as a middle-of-the-road performer and began to take on the competition from 2006. Savvy sector selection is the primary reason for its above-average returns.
Betting heavily on engineering and services proved fruitful in 2006. In 2007, it capitalised on the rally in metals, financial and engineering. And, in 2008, it fled to FMCG and healthcare. The fund manager is now focusing on construction, capital goods, power and cement.
The portfolio is churned quite frequently, with nearly 40 per cent of the stocks making an appearance for less than six months. Nevertheless, this fund can't be called aggressive. In fact, it avoids concentrated bets. Since 2005, no sector has breached the 20 per cent mark (though this is quite a high limit) and no single stock has crossed an allocation of six per cent.
What's interesting is the fund manager's flexibility. At the end of 2008, he was heavily into debt, which he totally offloaded in early 2009, to significantly move into cash.
During market rallies, this fund does make its mark. Yet, during downturns, it will not dramatically stray from the category average. But its appeal lies in the fact that over the long run, it rewards its investors. In the three-year and five-year periods as of July 31, 2009, the fund returned 19 per cent (category average, 9 per cent) and 30 per cent (category average, 24 per cent), respectively.
The portfolio is churned quite frequently, with nearly 40 per cent of the stocks making an appearance for less than six months. Nevertheless, this fund can't be called aggressive. In fact, it avoids concentrated bets. Since 2005, no sector has breached the 20 per cent mark (though this is quite a high limit) and no single stock has crossed an allocation of six per cent.
What's interesting is the fund manager's flexibility. At the end of 2008, he was heavily into debt, which he totally offloaded in early 2009, to significantly move into cash.
During market rallies, this fund does make its mark. Yet, during downturns, it will not dramatically stray from the category average. But its appeal lies in the fact that over the long run, it rewards its investors. In the three-year and five-year periods as of July 31, 2009, the fund returned 19 per cent (category average, 9 per cent) and 30 per cent (category average, 24 per cent), respectively.
IDFC PREMIER EQUITY PLAN A
There's no arguing with the numbers. In its history, this fund has underperformed the category average in just two quarters out of 14.
In 2007, it trounced the competition with a return of 110 per cent (category average, 64 per cent). In the bear phase, running from January 2008 to March 2009, it shed 54 per cent (category average, minus 64 per cent). Its three-year trailing returns of 30.45 per cent (July 31, 2009) places it streets ahead of the competition.
Hats off to fund manager Kenneth Andrade, who boldly rides his bets. Little wonder that allocation to services touched 44.74 per cent (May 2007) or FMCG accounted for 21.66 per cent (March 2009). Neither does he shirk from taking contrarian stands; his bias towards services ever since inception and his restraint from going heavy on energy, despite the sector gaining impressively, are cases in point.
With a focus on small companies, Andrade has an interest in keeping the fund's size small. He maintains a tight portfolio spread across 26 stocks (one-year average), whose allocations don't cross seven per cent, barring Shree Renuka Sugars.
Since Andrade took over the fund in February 2007, he has maintained a high debt allocation, which peaked at 25.53 per cent (June 2008), while cash peaked at 12.24 per cent (May 2008). Due to these high allocations, he missed out on the latest rally to some extent ,with a return of 91 per cent as against the category average of 104 per cent (March 9-July 31, 2009).
However, the fund's history still makes it a compelling pick.
In 2007, it trounced the competition with a return of 110 per cent (category average, 64 per cent). In the bear phase, running from January 2008 to March 2009, it shed 54 per cent (category average, minus 64 per cent). Its three-year trailing returns of 30.45 per cent (July 31, 2009) places it streets ahead of the competition.
Hats off to fund manager Kenneth Andrade, who boldly rides his bets. Little wonder that allocation to services touched 44.74 per cent (May 2007) or FMCG accounted for 21.66 per cent (March 2009). Neither does he shirk from taking contrarian stands; his bias towards services ever since inception and his restraint from going heavy on energy, despite the sector gaining impressively, are cases in point.
With a focus on small companies, Andrade has an interest in keeping the fund's size small. He maintains a tight portfolio spread across 26 stocks (one-year average), whose allocations don't cross seven per cent, barring Shree Renuka Sugars.
Since Andrade took over the fund in February 2007, he has maintained a high debt allocation, which peaked at 25.53 per cent (June 2008), while cash peaked at 12.24 per cent (May 2008). Due to these high allocations, he missed out on the latest rally to some extent ,with a return of 91 per cent as against the category average of 104 per cent (March 9-July 31, 2009).
However, the fund's history still makes it a compelling pick.
SUNDARAM BNP PARIBAS S M I L E Regular
Though a category beater in 2006 and 2008, it didn't deliver headline grabbing returns. Its performance of 81 per cent (category average, 64 per cent) in 2007 brought it in the limelight.
Fund manager S Krishna Kumar timely increased the allocation to metals from 6.5 per cent in June 2007 to 13 per cent in July and maintained it around those levels till the end of that year. The sector gained 89 per cent during the July-December period. The allocation to energy and engineering towards the end of the year also helped.
Recently, the fund manager doubled exposure to metals from six per cent (May) to 12 per cent (June) and the fund delivered remarkably in the bull run from March 9 to July 31, 2009, with a return of 117 per cent (category average, 104 per cent). Being heavy on energy also helped.
Right now, he is bullish on energy, industrials, IT, auto and sugar.
What's interesting is that he delivered impressively during the latest rally, though cash exposure averaged at around 14 per cent between February and April.
With this offering, you may be sure of ample diversification amongst sectors, as well as stocks. Overall, it's a good performer, with a three-year trailing return of 19 per cent (category average, 9 per cent) as on July 31.
Fund manager S Krishna Kumar timely increased the allocation to metals from 6.5 per cent in June 2007 to 13 per cent in July and maintained it around those levels till the end of that year. The sector gained 89 per cent during the July-December period. The allocation to energy and engineering towards the end of the year also helped.
Recently, the fund manager doubled exposure to metals from six per cent (May) to 12 per cent (June) and the fund delivered remarkably in the bull run from March 9 to July 31, 2009, with a return of 117 per cent (category average, 104 per cent). Being heavy on energy also helped.
Right now, he is bullish on energy, industrials, IT, auto and sugar.
What's interesting is that he delivered impressively during the latest rally, though cash exposure averaged at around 14 per cent between February and April.
With this offering, you may be sure of ample diversification amongst sectors, as well as stocks. Overall, it's a good performer, with a three-year trailing return of 19 per cent (category average, 9 per cent) as on July 31.
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