npavan78
06-07-2008, 09:58 AM
Investors can retain their units in IDFC Imperial Equity (earlier, Standard Chartered Imperial Equity). The fund’s compact portfolio of large-caps is likely to weather the current market correction better.
The one-year return, although at -2.5 per cent, has declined lesser than the diversified fund category average of -14 per cent, suggesting that the portfolio may have higher tolerance to bear phases. The large-cap tilt also holds promise for a lead rally when the market makes a recovery.
However, given the fund’s short track record of just over two years since its launch in March 2006, investors can avoid fresh exposure to the fund and instead watch its performance against such peers as Sundaram Select Focus or Kotak-30.
The fund’s monthly return pattern since its launch also suggests that while it has managed to contain the downside better than its benchmark BSE-200, the returns on the upside have lagged behind.
Suitability: IDFC Imperial Equity provides exposure to stocks of companies that are large in terms of their business as well as market capitalisation. To this extent, the fund may be suitable for novice investors looking to enter the equity market through exposure to prominent stocks.
The compact portfolio of less than 25 stocks also allows the fund to take focussed bets, which, if timed well, hold potential for higher returns.
Performance: The time of launch did not prove to be very auspicious for the fund as it had to face the May 2006 correction soon after raising funds. However, the correction could have provided a good window of opportunity to enter the market.
The fund’s return of about 11 per cent since its launch in March 2006 is superior to returns generated by diversified funds that were launched during the same period. This performance appears reasonable given the bout of corrections and the absence of any prolonged rally since the fund launch.
IDFC Imperial returned 15 per cent over the last two years, beating its benchmark by two percentage points. However, the monthly return since inception suggests that it has had difficulty in consistently beating the benchmark. While it did so in just 11 of the 26 months since inception, the fund has performed well against the Sensex — beating the index over 80 per cent of the times.
Portfolio overview: The fund, as part of its strategy, also seeks to invest in companies that have unlocked potential by hiving off potential businesses and also in companies that are into emerging sectors. The portfolio holds stocks such as Larsen & Toubro, Suzlon Energy and Gujarat NRE Coke, reflecting the above themes.
The fund increased exposure to software and pharma as defensive bets. This has reduced losses after its worst quarterly performance between January-March 2008. The fund continues to be managed by Mr Kenneth Andrade
The one-year return, although at -2.5 per cent, has declined lesser than the diversified fund category average of -14 per cent, suggesting that the portfolio may have higher tolerance to bear phases. The large-cap tilt also holds promise for a lead rally when the market makes a recovery.
However, given the fund’s short track record of just over two years since its launch in March 2006, investors can avoid fresh exposure to the fund and instead watch its performance against such peers as Sundaram Select Focus or Kotak-30.
The fund’s monthly return pattern since its launch also suggests that while it has managed to contain the downside better than its benchmark BSE-200, the returns on the upside have lagged behind.
Suitability: IDFC Imperial Equity provides exposure to stocks of companies that are large in terms of their business as well as market capitalisation. To this extent, the fund may be suitable for novice investors looking to enter the equity market through exposure to prominent stocks.
The compact portfolio of less than 25 stocks also allows the fund to take focussed bets, which, if timed well, hold potential for higher returns.
Performance: The time of launch did not prove to be very auspicious for the fund as it had to face the May 2006 correction soon after raising funds. However, the correction could have provided a good window of opportunity to enter the market.
The fund’s return of about 11 per cent since its launch in March 2006 is superior to returns generated by diversified funds that were launched during the same period. This performance appears reasonable given the bout of corrections and the absence of any prolonged rally since the fund launch.
IDFC Imperial returned 15 per cent over the last two years, beating its benchmark by two percentage points. However, the monthly return since inception suggests that it has had difficulty in consistently beating the benchmark. While it did so in just 11 of the 26 months since inception, the fund has performed well against the Sensex — beating the index over 80 per cent of the times.
Portfolio overview: The fund, as part of its strategy, also seeks to invest in companies that have unlocked potential by hiving off potential businesses and also in companies that are into emerging sectors. The portfolio holds stocks such as Larsen & Toubro, Suzlon Energy and Gujarat NRE Coke, reflecting the above themes.
The fund increased exposure to software and pharma as defensive bets. This has reduced losses after its worst quarterly performance between January-March 2008. The fund continues to be managed by Mr Kenneth Andrade