IDFC Premier Equity Fund: Review

Nature: Equity oriented open endedInception:  September 2005Assets under Management: Rs 5,670 crore at the end of September Fund manager: Kenneth AndradeAnalysis:• IDFC Premier Equity Fund looks at investing in companies early in their life cycle and into emerging business to enjoy the growth through the business cycle. The fund invests across market caps so is multi cap in nature. At the end of April 2012 consumer non durables was the top individual sector with a share of 17 per cent in the portfolio. Textile, transportation and power were some of the other leading sectors. Page Industries was the top individual stock with a share of just above 5 per cent. Asian Paints, Bata India, Glaxosmithkline Consumer Healthcare, Blue Dart, Kotak Bank and Coromandel International were some of the other top stocks in the portfolio. The BSE 500 was the benchmark for the fund and it was an outperformer over the one and three year time periods ended March 2012.• Six months later the fund had a beta of 0.79 which is a low figure considering the fact that the companies selected are quite broad based across sectors.  There was a change in the top holdings list as United Spirits was now the top holding with Asian Paints, Kaveri Seeds, Page Industries, Glaxosmithkline Consumer Healthcare, Bata and Blue Dart being some of the other leading ones. The fund was an outperformer over the one and three year time period ended September 2012.• By the end of April 2013 the fund had the highest exposure to consumer non durables with banks, transportation and gas being some other leading sectors. Page Industries and United Spirits were the top holdings in the portfolio with a share of just above 5 per cent.  SBI, Blue Dart, Kaveri Seeds, Asian Paints and Bata India were some of the other leading holdings. The fund remained an outperformer over the one and three year time periods ended March 2013• The fund continued to maintain the composition of its portfolio as per the pattern followed earlier with consumer non durables and transportation being the two sectors with a share in double digits at the end of September 2013. Textile products and gas were some of the other leading sectors. Page industries was the top individual holding in the portfolio with Kaveri Seeds, Blue Dart, Bata India, United Spirits,  Asian Paints and Container Corp being some of the other leading stocks. The fund remained an outperformer over the one and three year time periods.• Six months later the fund had the highest exposure to consumer non durables which was a massive 18 per cent. Transportation, textile products and gas were some of the other areas that had a high exposure. Kaveri Seeds Company was the top individual holding with an 8 per cent share. Page Industries, Blue Dart Express, Bata India, Va tech Wabag, MRF and Asian Paints were some of the other top stocks in the portfolio. The portfolio turnover was 0.35 times. The fund was a huge outperformer over the one and three year time periods.• There was not much change in the sector position at the end of September 2014 as consumer non durables remained at the top with a 16 per cent share. Finance, transportation and industrial products were some of the other areas where there was a high exposure. Kaveri Seed Company was the top holding in the portfolio with VA Tech Wabag, Page Industries, Blue Dart Express, Bata India, Tech Mahindra, Container Corporation, Crisil and Asian Paints being some other top ones. The portfolio turnover was now 0.45 times and the fund was a massive outperformer over the one year and three year time period. • Investors looking for a long term investment would find this fund suitable as it follows a buy and hold strategy. This can show strong results especially in a bull market and hence could be a part of a core portfolio for the long term.