Besides its long years of existence that include three market cycles, the scheme employs a time-tested stock-picking strategy. With a portfolio of over 40 stocks, the scheme manages to maintain sufficient amount of diversification across themes and companies.
It follows a buy-and-hold strategy with an average holding period of close to two years for an individual stock. What distinguishes the scheme from its peers is its unwavering focus on key fundamental parameters that the scheme's fund managers keep in mind while investing in companies. These are high return on capital employed, sound management and business model and the ability to deliver sustainable earnings growth in future.
The scheme's fund managers Anand Radhakrishnan and Roshi Jain seldom deviate from these key parameters while selecting companies for investments. These factors have stood in good stead in maintaining consistency in the schme's performance. In the past five and ten years, the scheme has delivered 12.6% and 14.2% returns, respectively, while its benchmark Sensex has delivered 9% and 10 % in the same period.
At present, it has bought large-sized firms which are not only beaten down but are also fundamentally sound. These are ICICI Bank, Lupin, IOC, ONGC and HDFC.
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