The scheme is aiming to expand its portfolio to capture the breadth of corporate India’s growth phase.
IDFC Premier Equity Fund opens for lump sum subscription today. Since March 31, 2011, only SIPs were allowed in the scheme.
The fund was launched in 2005 and manages a corpus of Rs. 2,619 crore (February 2012 figures). The scheme has delivered 20% CAGR since inception.
The minimum investment is set at Rs. 25,000. “In 2011, we diversified the portfolio which was skewed in favour of a large consumer trend and de-risked the specific opportunity. The strategy worked reasonably well into the end of 2011. The focus is not essentially market-timing but more on buying into emerging companies when valuations are right,” says Kenneth Andrade, Head-Investments at IDFC Mutual Fund.
The rationale
“Currently, the portfolio is extremely broad-based, since market conditions were not conducive to run a concentrated portfolio last year. We believe 2012 is a better time to build a portfolio. The market has been at a similar level in 2007 and has been consolidating itself. The worst of the domestic, economic and international news flow will give us numerous opportunities to polarize the portfolio into a couple of scalable ideas. The current portfolio has 40+ companies and some residual cash. The environment remains conducive to participate with the breadth of corporate India’s expansionary phase. We would in this round like to broad-base our portfolio to capture the breadth of corporate India’s growth phase. The bias would be on the consumer eco-system,” adds Kenneth.
Current portfolio
|
Sector |
2011 |
2012 |
|
Consumer Related Exposure |
40.2% |
32% |
|
Investments (Infra Assets) |
16.2% |
38% |
|
Agriculture |
10.6% |
4% |
|
Others |
14.5% |
2% |
