Do not ignore this fund when making a choice. Although, the fund around for

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a very long time, it finally earned its place in the sun; the outcome of the Robeco group taking a stake in Canbank MF (2007) and Anand Shah coming on board (2008).

After a good show in 2007, it fell the least in 2008 despite the cash/debt allocation averaging at just 11 per cent (peaking at 21 per cent). The key was being invested in the right firms. “On the back of fiscal stimulus, monetary easing and strength of favourable demographics, we were confident of recovery in domestic demand. So we aligned our portfolio acco­rdingly,” says Shah. Come 2009, and the fund once again rallied, thanks to its banking allocation, increased mid-cap exposure and bets on stocks such L&T, Bhel, Gail, Gujarat State Petronet, HPCL and BPCL.

Although Shah maintains he is a buy-and-hold investor, he has utilised to his benefit the flexibility to move in and out of sectors and stocks, which stems from a small asset base. “We buy into com­panies that have secular growth opportunities to stay invested for longer periods of time. Extreme volatility has led to higher-than-normal churn in equity portfolios across the industry,” he concedes.

Shah focuses on companies with superior growth. Although he does not shirk smaller fare, the risk-reward profile has led to a large-cap tilt. Excellent perfor­mance numbers without undue risk and a compact and diversified portfolio makes this one a strong contender. —Value Research