ABSL Focused Equity MF: Past record less relevant | Economic Times

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 81482154Where the fund invests 81482163Basic factsDate of launch: 24 October, 2005Category: EquityType: Large capAUM (As on 28 Feb, 2021): Rs 4,606 croreBenchmark: NIFTY 50 total return indexWhat it costsNAV (As on 9 Mar, 2021)Growth option: Rs 77.5636Dividend: Rs 18.3464Minimum investment: Rs 1000Minimum SIP amount: Rs 1000Expense ratio (As on 31 Jan, 2021): 1.93%Exit load: 1% for redemption within 365 daysFund manager: Mahesh PatilTenure: 10 years, 7 monthsTop 5 sectors in portfolio (%) 81482168Top 5 stocks in portfolio (%) 81482175Recent portfolio changesNew entrants: DLF, Dr. Reddy’s Laboratories (Dec), State Bank of India, Tata Steel (Feb)Complete exits: PI Industries (Dec). DLF, SBI Life Insurance (Jan). Cadila Healthcare (Feb)Additions: Larsen & Toubro, Dr. Reddy’s Labs, United Spirits,Axis Bank (Jan & Feb). NTPC, Coal India,ICICI Lombard General Insurance Company, Tata Consumer Products (Feb)How risky is it? 81482179Source: Value ResearchShould you buy?This fund’s transition from its earlier diversified avatar as ABSL Top 100 to its current positioning as a focused fund has been quite drastic. The portfolio size has been culled from a hefty 70 in 2018 to less than 30 now. While the fund retains its distinct large cap tilt, this realignment has brought conviction plays into sharper focus. While the fund manager is visibly more index-conscious in his diversified offering ABSL Frontline Equity, he takes a more adventurous stance in this strategy. Although the fund enjoys a healthy long term track record, the change in mandate makes its past less relevant. The fund manager has to channel his proven execution in a different investing style.