With markets seeing sharp cuts in midcap and smallcap stocks, expert are advising retail investors to consider investing in schemes with high focus on large-sized companies. Among the schemes that have high focus on large-sized companies and have done consistently well across market cycles is Aditya Birla Sun Life Top 100 Fund. Managed by Mahesh Patil, the scheme follows buy-and-hold strategy in terms of selecting companies for investments. This means that the scheme's fund manager selects large-sized companies with a specific theme in mind and waits for the theme to play out to reap maximum benefit out of it.
In the past three years, Birla Sun Life Top 100, a five-star-rated scheme, has not only beaten its benchmark, the Nifty 50, but also its peers. In the past three-year and five-year periods, the scheme has delivered 12 per cent and 18 per cent returns, respectively, while its benchmark Nifty 50 has given 7 per cent and 11 per cent returns during the same period.
In the past six months, the scheme's fund manager has picked up well-established companies, such as Dabur India, Dalmia Bharat, Hero MotoCorp, GAIL (India), Hindustan Petroleum Corporation, and Hindustan Zinc.
Being large-sized companies, their earnings growth is less likely to be volatile than their mid-and-small-sized peers.
