You won't catch the fund manager napping here. Aggressive portfolio churning, swift moves and strategically timed entry and exit into opportunistic sectors are what this fund is all about. The fund has displayed an uncanny ability to sense an opportunity at the right time. It did so during the third quarter of 2006 by timing its entry in banking stocks to perfection.
Moreover, the fund manager does not mind going against the herd. For instance, the fund has maintained its position in the automobile sector at a high of over 13 per cent through this bear phase while the average category exposure to the sector has hovered around 7 per cent.
Despite frequent fund manager changes (the current one is the fifth), the fund has not skipped a beat and continues to outshine the pack. Barring one year, the fund has consistently beaten the category returns over the past five years.
But the latest fund manager change has brought about a visible alteration in the portfolio. From the earlier 35 stocks, scattered evenly across market cap segments, the portfolio has expanded to 44. This may dilute the risk, but also the returns. In a more concentrated portfolio, each stock has a significant impact on the fund's returns.
Perhaps, these are early signs of a shift in strategy towards a more conservative bend. But aggressive investors should not jump ship just yet. Going by the past performance, excellent stock picks and the track record of the fund house, it would be wise to adopt a wait-and-watch approach.
(by valueresearch)
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