How has the fund performed? While the fund has beaten its benchmark comfortably, it has lagged behind peers over the past decade.
With a 10-year return of 11.16%, the fund almost mirrors the category average (11.52%) and has beaten the benchmark (9.13%) by a fair margin.
As on 16 Aug 2017
Annualised performance (%) The fund has struggled to keep pace with peers across time periods
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As on 16 Aug 2017
Yearly performance (%) The fund’s performance has been below par in recent years.
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As on 16 Aug 2017
Basic Facts Date of launch: 31 Mar 1993 Category: Equity Type: Tax planning Average AUM: Rs 5,947.98 cr Benchmark: S&P BSE 100 Index
What it costs NAV's Growth option: Rs 136 Dividend option: Rs 45 Minimum investment: Rs 500 Minimum SIP amount: Rs 500 Expense ratio (%):2.00
Exit load: 1% for redemption within 365 days *As on 16 Aug 2017
Fund manager: Dinesh Balachandran Tenure: 10 Months Education: B.Tech, M.S, CFA
Where does the fund invest? The fund prefers taking large positions in its top bets.
How risky is it? The fund’s risk-reward profile is inferior to many peers.
Wherever not specified, data as on 31 Jul 2017. Source: Value Research
Should you buy? This tax-saving fund has lagged behind its peers across different time periods. Much of this stems from its preferred large-cap tilt compared to peers, who have benefited from a higher mid-cap exposure. Its portfolio average market capitalisation is higher than its category average by Rs 20,000 crore.
The fund has recently been handed over to a new fund manager who maintains a strict value bias and insists on higher margin of safety in his stock picks. Besides, the portfolio takes healthy exposure in its top bets as the fund manager prefers companies that provide cushion against a downside. The fund’s approach may lead to sharp bouts of underperformance, but may reward conservative investors in the long term.
