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The 2013 rally being largely led by defensive sectors such as pharma, IT and FMCG, funds with a defensive slant have fared well during this period.
But IDFC Premier Equity delivered healthy returns despite not going overboard on these segments. The fund has been successful in bettering the BSE 500 Index, its benchmark, across one-, three- and five-year timeframes.
Investors with a moderate risk appetite can buy the units of the fund given its consistent track record and ability to deliver superior returns over the long term.
IDFC Premier Equity has been one of the most consistent performers in the mid-cap category. In the last five years, its one-year return has been higher than the BSE 500 Index 95 per cent of the time. Since the 2008 correction, the fund has managed to outperform during most rallies.
It has been equally adept at curtailing downsides during corrective phases.
Better than peers IDFC Premier Equity also scores over its peers — ICICI Pru Midcap Fund, Franklin India Prima Fund, L&T Midcap Fund and Kotak Midcap Fund — on the basis of risk-adjusted performance.
It has been able to sustain itself as a top quartile performer consistently in the last five years. Its stock and sector choices tend to be offbeat, but well chosen, and mostly a little ahead of others. Sensing the opportunity in the cement space, the fund added Shree Cements and Ramco Cements to its portfolio.
These stocks have gained a robust 80 per cent and 116 per cent, respectively, in the last three years, compared with a modest 2 per cent gain for the benchmark.
Likewise, adding pesticide and seed major Bayer Crop Science and Kaveri Seeds to the portfolio lifted the fund’s NAV.
Healthy gain in entertainment stocks — Zee Entertainment and Entertainment Network Ltd — also helped performance.
A systematic investment of ₹1,000 in the fund over the last five years would have yielded returns in excess of 14 per cent annually. In the last one year, the fund increased exposure to IT, auto and select stocks in the construction and engineering space.
The fund has held its top bets — Page Industries, Kaveri Seeds and Bata India — for a while now.
Fundas
■ Differentiated stock bets
■ Spotting winning themes early
■ Low portfolio concentration
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