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 12.35%, the fund has outperformed both the benchmark (8.75%) and the category average (11.23%). The fund has a healthy long-term track record.
Growth of Rs 10,000 vis-a-vis category and benchmark
Annualised performance (%)
Date of launch: 31 March 1996
Type: Tax Planning
Average AUM: Rs 6,309.22 cr
Benchmark: Nifty 500 Index
WHAT IT COSTS
NAVs(As on 23 May 2017)
Growth option: Rs 479
Dividend option: Rs 62
Minimum Investment: Rs 500
Minimum SIP amount: Rs 500
Expense ratio(As on 30 April 2017) (%): 2.30
Exit load: 1% for redemption within 365 days
Vinay R. Kulkarni
Tenure: 10 Years and 5 mMonths
Education: BTech, PGDM
WHERE DOES THE FUND INVEST?
HOW RISKY IS IT?
Wherever not specified, data as on 30 April 2017. Source: Value Research
Should you buy?
This fund’s return profile has improved since last year after a stretch of patchy performance pulled down its otherwise healthy long-term track record. The fund manager prefers to take large positions in his top bets, despite having a heavily diversified portfolio.
Typical to the fund house’s investing style, this fund continues to back its high-conviction stock and sectoral bets—only recently has this yielded some result. The fund’s portfolio is tilted towards large caps as compared to many of its peers.
Its risk-reward profile is below average and exhibits higher volatility in returns. Investors may want to wait for sustained improvement in the fund’s performance. There are other funds with a consistent and proven track record.