Sundaram BNP Paribas Select Focus-G

The fund has a focused strategy and its till-date performance shows that the fund has been fairly successful in implementing this strategy. This makes it a good pick for most investors

This fund's no-nonsense, focused approach has resulted in decent returns to bag a four-star rating.

With a mandate to invest in not more than 30 stocks, with a particular focus on three themes, a concentrated portfolio is the legitimate outcome (the top five holdings account for 40 per cent of the assets).

Though an aggressive offering, the risks are partly mitigated by a strong bias for large-cap stocks. The fund anchors itself in the big and prominent companies of the sector or themes it believes to be most promising. Going by its returns, it has been fairly successful in implementing this strategy.

Naturally, this mandate also translates into a high portfolio turnover. Most of the stocks have remained in its portfolio for less than six months. Many others keep moving in and out frequently. In fact, many a times it seems to overdo it as stocks are rotated in the space of just a couple of months. But the fund manager deserves a pat on the back for her success in sector rotations. For example, the fund had timed its entry in the technology sector in the last quarter of 2002 to perfection. It also exited the sector at the right time to avoid the losses in the subsequent two quarters when technology stocks lost massively. Similarly, the fund manager was spot on with the entry into the metal sector in the second quarter this year. More such instances of apt sector moves are visible in its portfolios. Another striking trait of the fund is the proactive way in which it moves into cash to protect the downside during market crashes. A fairly aggressive offering, this fund has delivered what it set out to do.

(Source: Value Research)