While the fund has underperformed in recent years, amid a largely growth and momentum-driven rally, its longer term track record is healthy.
By ET Bureau | Updated:
BCCL
With a 10-year return of 16.5%, the fund has comfortably outperformed both the category average (13.9%) and the benchmark index (12.1%).
ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.
How has the fund performed? With a 10-year return of 16.5%, the fund has comfortably outperformed both the category average (13.9%) and the benchmark index (12.1%).
The fund has comfortably beaten both the index and the category average over the past decade.
As on 22 Jan 2018
Annualised performance (%) The fund has underperformed across 1-, 3- and 5-year periods. As on 22 Jan 2018
Yearly performance (%) The fund has struggled to outperform in recent years. BASIC FACTS Date of launch :7 Apr 2004 Category : Equity Type : Mid cap Average AUM : Rs 4,441 cr Benchmark : Nifty Free Float and Midcap 100 Index
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WHAT IT COSTS NAVS* Growth option : Rs 118 Dividend option : Rs 64
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Minimum investment : Rs 5,000 Minimum SIP amount : Rs 500 Expense ratio (%)^ : 2.27 Exit load: 1% for redemption within 365 days
*As on 22 Jan 2018
Fund manager : Lalit Gopalan Nambiar Tenure: 1 year and 9 months Education: B. COM (H), MMS AND CFA
Where does the fund invest? The fund portfolio is more compact now, allowing healthy exposure in top bets. How risky is it? The fund's risk-return profile has taken a hit in the past few years. Wherever not specified, data as on 31 Dec 2017. Source: Value Research
Should you buy? This is a true-to-label mid-cap fund with a focus on turnaround stories. It identifies businesses witnessing weaker earnings growth in relation to their true potential. The aim is to spot stocks with favourable risk reward profiles and to ride their earnings recovery.
With a bottom-up process, the fund is quite agnostic to value and growth, even as it retains some value stocks because of their growth potential. Under the current manager, the portfolio has been pruned from 100-plus to around 65 stocks, allowing for meaningful positions in high conviction bets. While the fund has underperformed in recent years, amid a largely growth and momentum-driven rally, it's longer term track record is healthy.
