When the direction of the market looks uncertain, it makes sense to be with mutual fund schemes with a proven track record. Also, if the fund manager attached to the scheme has been around for a long time, it’s even better, especially if it is focused on spotting interesting large-sized ideas in terms of valuations. One such scheme which meets these parameters is Aditya Birla Frontline Equity, which is an ideal large-cap fund for conservative investors.
The scheme has weathered several market cycles, and is the one of the best funds if you want to play it safe. The scheme’s fund manager Mahesh Patil has been managing it for the past 13 years. Patil has constructed a scheme which has stable and well-diversified companies. In the past five- and 10-year periods, the scheme has given 15% and 18% returns, while its benchmark, Nifty 50 Total Return, has given 13% and 15%.
In the past six months, Patil has invested in companies under the value theme. These companies are likely to see trend reversal in terms of earnings’ growth in the coming quarters. This may be due to timely expansion of the companies in their sectors, attractive valuations with the stable fundamentals and multiple revenueenhancing triggers. A few prominent companies in the scheme’s portfolio are SBI, Hero MotoCorp and ACC.
Expert Take Kaustubh Belapurkar, Director (fund research), Morningstar India: Mahesh Patil runs a well-diversified portfolio of large-cap growth stocks. His stellar stock-picking skills have helped the fund deliver significant outperformance over the long term. The fund’s performance has been fairly steady through market cycles and this makes it an excellent choice for investors looking for a consistent large-cap fund.
