markettrend766
05-07-2009, 09:24 AM
Investors can consider adding DBS Chola Opportunities Fund to their equity portfolio. Helped by a relatively small asset base which allows flexibility in management and good sector choices, the fund has delivered a stunning performance in the rally since March lows. Its return of about 105 per cent in the recent rally, is way above that of benchmark indices such as Nifty and CNX 500, placing it among the best performing diversified equity funds during the period. The fund, however, may be more suited for investors with a high-risk appetite, given the concentrated exposures it tends to take to high-growth sectors. The fund’s flexi-cap investment style also pegs up its risk profile considerably.
Performance
With a return of over 19 per cent, DBS Chola Opportunities features among the select list of funds that have delivered double-digit returns outpacing that of the S&P CNX Nifty over the past year. Thanks to its participation in the recent rally, the fund’s three-year and five-year performance numbers too have perked up, what with returns of over 21 per cent and 27 per cent, respectively. During these time frames, not only has the fund delivered better than its benchmark Nifty but it has also outshone its category average by a considerable margin. It has fared reasonably well during market corrections also. Except for the equity market crash in October 2008, it has done well to contain its downside risk.
On a monthly rolling return basis, the fund has, in the last five years, beaten its benchmark six out of ten times, with the average margin of out-performance or underperformance hovering just over three percentage points.
Portfolio
The portfolio of DBS Chola Opportunities Fund has a fair representation from most sectors, despite having a small asset base of over Rs 62 crore. Its latest portfolio (as on May 31) regardless of the heavy focus on financials (21 per cent) and energy (20 per cent) sector has a reasonable sprinkling from other high-growth sectors too. What also merits note is that within a sector the fund has a well-diversified stock portfolio. This, to an extent, may help it spread the risk that otherwise comes bundled with concentrated sector exposure. In terms of market capitalisation, the fund’s equity portfolio is heavily biased towards stocks with large capitalisation (62 per cent); mid and small-cap stocks make about 14 per cent and 10 per cent, respectively.
Performance
With a return of over 19 per cent, DBS Chola Opportunities features among the select list of funds that have delivered double-digit returns outpacing that of the S&P CNX Nifty over the past year. Thanks to its participation in the recent rally, the fund’s three-year and five-year performance numbers too have perked up, what with returns of over 21 per cent and 27 per cent, respectively. During these time frames, not only has the fund delivered better than its benchmark Nifty but it has also outshone its category average by a considerable margin. It has fared reasonably well during market corrections also. Except for the equity market crash in October 2008, it has done well to contain its downside risk.
On a monthly rolling return basis, the fund has, in the last five years, beaten its benchmark six out of ten times, with the average margin of out-performance or underperformance hovering just over three percentage points.
Portfolio
The portfolio of DBS Chola Opportunities Fund has a fair representation from most sectors, despite having a small asset base of over Rs 62 crore. Its latest portfolio (as on May 31) regardless of the heavy focus on financials (21 per cent) and energy (20 per cent) sector has a reasonable sprinkling from other high-growth sectors too. What also merits note is that within a sector the fund has a well-diversified stock portfolio. This, to an extent, may help it spread the risk that otherwise comes bundled with concentrated sector exposure. In terms of market capitalisation, the fund’s equity portfolio is heavily biased towards stocks with large capitalisation (62 per cent); mid and small-cap stocks make about 14 per cent and 10 per cent, respectively.