Equity markets have seen a strong rally on the back of strong flows from foreign investors and hopes of the NDA-led coalition coming back to power. The Nifty has moved up from 10,488 on Dec 10, 2018 to 11,672 on April 9, gaining 11.7 per cent in the period. Funds that bet on banks and financial services managed to outperform during this period. ET takes a look at five equity mutual fund schemes that stayed ahead of the rest in this period.
HSBC Multicap Fund
AUM: Rs 516 crore
Fund Manager: Neelotpal Sahai
Top 3 holding: HDFC BankNSE -2.23 %, ICICI BankNSE -0.78 %, InfosysNSE -1.05 %
Return: 13.14 per cent
A MULTICAP fund with 45-50 stocks in its portfolio, the scheme has a mix of large, mid and small cap stocks. The scheme is overweight banking and financial with a weight of 40 per cent against its benchmark weight of 34 per cent. Stocks like Yes Bank, HDFC Bank, ICICI bank, Bharat Financial helped the fund generate alpha for investors.
IIFL Focused Equity Fund
AUM: Rs 164 crore
Fund Manager: Prashasta Seth
Top 3 holding: HDFC bank, Merck, Infosys
Return: 16.33 per cent
THE FUND manager runs a concentrated portfolio of high conviction 28-30 stocks. The fund is market cap agnostic and there is no restriction on sectors that it can invest in. Companies which find a place in the portfolio are ones with earnings growth, cash generating capital light business model, high ROCE, ROE and attractive valuation relative to its peers. Picks like HDFC Bank, SBI, Tech MahindraNSE 0.11 % helped it come up with high returns.
Franklin India Focused Equity
AUM: Rs 7,445 crore
Fund Manager: Anand Radhakrishnan & Roshi Jain
Top 3 holding: HDFC bank, ICICI Bank, SBI
Return: 13.84 per cent
A CONCENTRATED fund with high conviction bets, the fund manager invests in a maximum of 30 stocks in the portfolio. The top 10 stocks account for as much as 61 per cent of the portfolio with the top four bets from the banking space. Stocks like Axis, SBI and Ujjivan have buoyed the fund performance in this period.
SBI Focused Equity Fund
AUM: Rs 3,580 crore
Fund Manager: R Srinivasan
Top 3 holding: HDFC Bank, P&G Hygiene, SBI
Return: 13.11 per cent
FINANCIAL PLANNERS like this fund as its run by the same fund manager since its inception in 2009. The fund manager has a concentrated portfolio of 25-30 stocks, such as Divi’s Lab and InterGlobe Aviation, with the top 10 holdings accounting for 50-55 per cent of the portfolio. The fund manager does not hesitate taking higher exposure to stocks with high conviction. The fund has a 55 per cent exposure to large caps with the balance 45 per cent in mid and small cap stocks.
HDFC Equity Fund
AUM: Rs 22,503 crore
Fund Manager: Prashant Jain
Top 3 holding: SBI, ICICI bank, Infosys
Return: 12.95 per cent
A LARGE cap oriented scheme that focuses on high quality companies many of which are the largest players in their respective sector. The top 10 positions include giants like SBI, ICICI Bank, Infosys, SBI, Reliance, HDFC bank and L&T. Going ahead, the fund manager is bullish on corporate banks, utilities and capex with the top 10 positions accounting for 61 per cent of the portfolio. Staying away from consumer names, lower weight to pharma and overweight corporate banks has helped the fund performance.