This multi-cap MF is consolidating its portfolio

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.HOW THE FUND HAS PERFORMED 83059063WHERE THE FUND INVESTS 83059073BASIC FACTSDate of launch: 10 January 1994Category: EquityType: Multi-capAUM (As on 30 Apr 2021): Rs 5,737 croreBenchmark: NIFTY 500 Multicap 50:25:25 Total Return IndexWHAT IT COSTSNAV(As on 25 May 2021)Growth option: Rs 387.43IDCW: Rs 24.45Minimum Investment: Rs 5,000Minimum SIP Amount: Rs 100Expense ratio(As on 30 APR 2021) (%): 1.96FUND MANAGERRajat ChandakTenure: 9 monthsTop 5 sectors in portfolio (%) 83059085Top 5 stocks in portfolio (%) 83059115Recent portfolio changesNew Entrants: Bajaj ElectricalsComplete Exits: Arvind Fashions, Persistent Systems, Canara Bank, Fortis Healthcare, ICICI Lombard, IDFC, NTPC, Tata CoffeeIncreasing allocation: Orient Electric, KNR Constructions, JK Cement, Avenue Supermarts, Sundaram-Clayton, Bajaj Electricals, Mahindra & Mahindra Financial Services, Bharat Forge, Astec LifesciencesHow risky is it? 83059128Source: Value ResearchShould you buy?Last year, this fund had to quickly realign a fifth of its portfolio to adhere to the revised asset allocation norms for multi-cap funds. Its earlier large-cap heavy stance has been toned down to accommodate 25% exposure to both mid-and small caps. Transition now over, the fund manager is in the process of consolidating and reshaping portfolio to suit his style. The size of the portfolio has been cut from 85 to 75 stocks and maybe pruned further. The fund manager prefers businesses with ability to scale up or gain market share, with a bias for consumer-oriented firms. The scheme’s performance has suffered amid the transition and with consolidation still underway, it will need time to prove execution capabilities in its new avatar.

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