A fund to suit volatile market conditions, it mostly invests in large-cap stocks and is well diversified across sectors. Exposure to mid-cap stocks is with the purpose to boost returns, but it does so without increasing the risk and rarely goes above 15-20 per cent. The discipline to stick to a proven strategy has worked for the fund and has been a reason for its consistent returns across market cycles.

Where the fund scores is by following a dynamic allocation model which moves across sectors to benefit from market movements. For instance, in the falling markets of 2011, the fund remained cautious by holding 90-95 per cent in equities and the rest in debt and cash. But, it was quick to catch the 2012 rally when it increased equity allocation to touch 98 per cent. The fund manager does not shy away from taking calls on companies and sectors that are likely to witness a turnaround; a tactic that has aided its performance in the long run.

other funds based on growth:

Mirae Asset India Opportunities: Spotting winners

BNP Paribas Midcap: Deft Mover

ICICI Pru Value Discovery: Sweet spot

DSP BlackRock Micro Cap: Turnaround story

Mirae Asset Emerging Bluechip: Well defined path

Franklin India Smaller Companies: Less volatile ride

Franklin India High Growth: Steady outperformer

olmdesk@outlookindia.com