Twenty years is a long time to observe the performance of a mutual fund scheme and long enough for naysayers to be convinced about the virtues of investing in mutual funds for the long term. In its 21 year history, this fund has weathered several market cycles to emerge a winner. The fund has posted a robust 23.77 per cent returns since inception and recently its NAV crossed Rs 1,000, which made it the first fund in the country to reach this price.
Endless NAV growth
Track the performance of a fund that has grown 100 times in its little over two decade journey
Advertisement
The primary investment objective of the fund is to achieve long-term growth of capital by investment in equity and equity related securities. Currently, the fund does this by investing in a combination of companies that are market leaders and emerging leaders. The fund manager attempts to identify growth stocks available at reasonable valuation, thus adopting Growth at Reasonable Price (GARP) style for investing.
The number of stocks in this fund’s portfolio ranges between 50 and 60, with investments in companies with a consistent track record and performance history. Further, the buy and hold approach has meant that there are several stocks in the portfolio that have been there for a long time. Investment in Divi’s Laboratories in the past, when it was a lesser known company has paid off handsomely. Investment in United Phosphorus Limited, the company with the highest exposure in this fund, has been held for long.
Investments in sectors like finance, chemicals and construction are all gaining from the economic transformation that the country is witnessing. The investment approach is typically bottom-up, research-driven and is ably supported by an investment team which applies rigorous qualitative checks and looks at company’s fundamentals.
Advertisement
On the performance front, the fund consistently manages to outperform its benchmark, the S&P BSE 100 over different time frames. If one had invested from May 1, 2014 in this fund through an SIP of Rs 1,000, it would be worth Rs 47,556 on May 1, 2017. Do not be discouraged by the high NAV of the fund, it still has a lot of steam to invest in and gain from.
Show comments