IDFC Imperial Equity fund is an open ended fund with an exposure in Large cap segment. This fund is to be considered by investors with a long term prospect of 3 years or more, reckons financial advisor Arnav Pandya
The fund is a diversified large cap based fund. It had the highest exposure of 22 per cent of the portfolio to banks at the end of March 2010. Software was next with around 10 per cent of the portfolio and this was followed by consumer non durables. Reliance Industries was the top stock in the portfolio with an exposure of over 7 per cent. Others with a high exposure included BHEL, ICICI Bank, Sterlite and HDFC Bank. The fund was underperforming its benchmark the S&P CNX Nifty over the one year period but outperforming over the three year period.
Six months later the position on the sectoral front was the same with banks being the top sector followed by software and consumer non durables. This was followed closely by pharma and auto. In terms of the individual stocks ICICI Bank was at the top spot followed by Mphasis, ONGC, BHEL and Bank of Baroda. The fund continued on its performance of underperforming its benchmark over the one year period but outperforming over the three year time period.
By the end of March 2011 while banks and software remained the top two sectors the third spot was now occupied by petroleum products. Reliance Industries was the top holding and some of the other companies with a higher exposure were TCS, Sterlite, Jindal Steel & Power and BHEL. The fund was underperforming over the one year period but outperforming over the three year time period.
Six months later the situation saw banks remain as the top sector holdings followed by software and then by auto. When it came to the individual stocks the portfolio turnover ratio stood at 1.1 times and the top stock in the portfolio was Infosys. M&M, HDFC Bank, Coal India and Bharti Airtel were some of the other stocks that had a higher holding. The fund was now outperforming the benchmark over the one and three year time periods.
At the end of May 2012 banks was still the top sector with 21 per cent of the portfolio exposure. Software was the only other sector with more than 10 per cent exposure at 12 per cent followed by auto. ICICI Bank was the top holding with over 7 per cent of the portfolio and there were three banks in the top 10 list. Reliance Industries andITC were the other two stocks that had an exposure of more than 5 per cent. The fund was an outperformer over the one and three year time periods.
This is a fund that can be considered by investors who are looking for an exposure to large cap stocks and who have a time horizon of three years and more.