Over a 10-year time frame, the fund has returned 14.26 per cent, beating both its category average and its benchmark handsomely, which have returned 9.46 per cent and 10.23 per cent, respectively. The fund is predominantly large-cap oriented.
By THE ECONOMIC TIMES |
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With stock indices at an all-time high, financial advisors believe it is time for investors to play safe and increase their equity allocation through large-cap funds. Given this scenario, one fund that finds favour with investors is Birla Sunlife Frontline Equity fund.The scheme has managed to perform in both bull and bear cycles, through prudent stock selection and timely shift across sectors. Managed by Mahesh Patil since November 2005, it follows a bottom-up approach to stock picking with a strategy to focus on buying companies with growth at reasonable valuations.
Over a 10-year time frame, the fund has returned 14.26%, beating both its category average and its benchmark handsomely, which have returned 9.46% and 10.23%, respectively. The fund is predominantly large-cap oriented.
It invests about 85% of its corpus in large caps and the balance in mid and small-cap stocks. It has a long tail with the portfolio consisting of 70 stocks as the fund manager stays away from taking large concentrated bets, restricting individual stock exposure to not more than 5-6%. The top 10 stocks account for one-third of the portfolio. Having a higher exposure to cyclicals and lower exposure to IT has helped the fund stay ahead in the last one year. In the past six months, it has increased allocation to metals such as Hindalco, Tata Steel, and financials such as L&T Finance Holdings and Max Financials.
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