Fund managers are adopting a stock-specific approach to deploy increasing inflows from investors. This approach works in favour of large-sized companies that are placed better financially and operationally as compared with their mid-sized counterparts. Given this, investing in a concentrated portfolio of large companies makes sense. One such scheme is DSP BlackRock Focus 25.
The scheme's fund managers Harish Zaveri and Jay Kothari invest close to 80 per cent of the portfolio money in large companies, which are nothing but high conviction bets. They tweak the portfolio as and when favourable developments transpire. In the past three-year and five-year periods, the scheme has delivered 12.7 per cent and 16 per cent returns respectively compared with 9 per cent and 13 per cent returns generated by its category of schemes in that order.
In the past six months, the scheme's fund managers have added diversified companies in its portfolio, which are placed reasonably well in their respective sectors. A few prominent companies among them are Hero MotoCorp, Housing Development Finance Corporation, Larsen & Toubro, Yes Bank, and Finolex Industries.
