Financial Advisor Arnav Pandya recommends on looking for alternatives to Baroda Pioneer Growth Fund. He says that the fund has been inconsistently performing in the past few years.
Baroda Pioneer Growth Fund is an open-ended equity oriented fund which has an aim to generate long term capital appreciation from an actively managed portfolio of equity & equity related instruments. It has been an inconsistent performer in the past few years. Financial advisor Arnav Pandya recommends looking for other options and staying away from the fund for the time being.
Inception: September 2003
Assets under Management: Rs 160 crore at the end of June 2013
Fund Manager: Dipak Acharya
• This fund is one of the leading offerings of the mutual fund and the fund looks for large cap investments in its portfolio to generate returns. At the end of January 2012, banks had the highest exposure to the portfolio with nearly 20 percent share there.
• Software, petroleum products, auto, finance and Pharma were some of the other areas that had a higher share. Around 10 percent of the portfolio was in cash and cash equivalents.
• Reliance Industries was the top individual stock with Infosys, ICICI bank, L&T, HDFC, SBI, ITC, Bharti Airtel and HDFC Bank being some of the other leading stocks. The portfolio turnover ratio was low at 0.35 times and the benchmark for the fund was CNX 100. The fund was an underperformer over the one and on par for the three year time period.
• Six months later the fund witnessed the share of banks in the portfolio rise to over 21 percent. Software, finance, consumer non durables, Pharma and petroleum products were some of the other leading sectors in the portfolio.
• The cash component in the portfolio had come down to 3 percent. ICICI bank was now the top individual holding. ITC, Infosys, Reliance Industries, HDFC, SBI, L&T, HDFC Bank and TCS were some of the other top holdings.
• The portfolio turnover ratio had climbed to 0.5 times. The fund was an underperformer over the one and three year time period ended June 2012.
• The situation on the sector front in the portfolio had not changed much at the end of January 2013. Banks continued to be top individual sector with software, consumer non durables, Pharma, finance and petroleum products being other significant ones.
• ICICI Bank retained its position as the top individual holding with ITC, Infosys, Reliance Industries, SBI, HDFC bank, HDFC. L&T and ONGC being the other top holdings. The portfolio turnover ratio pulled back slightly and the fund remained an underperformer over the one and three year time periods.
• At the end of June 2013 banks was the top sector with a 22 percent share of the portfolio. Software, consumer non durables and petroleum products were some of the other sectors with a significant share.
• ITC was the top individual holding with a share of 7 percent. Reliance Industries, Infosys, ICICI bank, HDFC, HDFC bank, L&T and SBI were some of the other holdings. The portfolio turnover ratio was at 0.34 times. The fund was an underperformer over the one and three year time periods.
• Investors can look for other options and stay away from the fund for the time being as it has not been able to maintain consistent outperformance over the last few years.
- Arnav Pandya
(The author is the Financial Advisor & Writer)