Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Wednesday, December 18, 2013

IDFC Classic Equity Fund

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

IDFC Classic Equity Fund

IDFC Classic Equity is a large-cap equity fund which currently has assets under management worth Rs. 158.52 crore. It was launched in August 2005. The fund is benchmarked against the BSE-200 Index.

Performance

YTD

1-Year

3-Year

5-Year

Since Inception

IDFC Classic Equity

0.93

26.61

6.30

1.01

11.65

BSE 200

1.52

17.31

6.00

1.99

12.98

All figures in % as on January 31, 2013; Returns above one-year in CAGR terms

The fund has outperformed its benchmark in the one- and three-year periods. It has underperformed in terms of five-year returns and returns since inception.

2008

2009

2010

2011

2012

IDFC Classic Equity

-54.96

63.64

14.38

-26.79

37.26

BSE 200

-56.73

83.65

16.22

-26.95

30.98

All figures in %

Out of the last five calendar years, the fund has managed to outperform its benchmark only in 2008, 2011 and 2012. The fund underperformed substantially in 2009.

Investment philosophy and approach.The fund can invest across sectors and aims to invest in well-managed sustainable businesses whose shares are available at reasonable value.

Portfolio Characteristics

Number of equity holdings.Currently the fund has 32 stocks in its portfolio against the category median of 41. The average stock count has been 26 in 2008, 29 in 2009, 28 in 2010, 33 in 2011 and 2012. The portfolio has become more diversified gradually.

Sector concentration.The fund has a higher concentration in the top three, five and 10 sectors than the category median.

Top 3

Top 5

Top 10

IDFC Classic Equity

37.07

55.39

74.87

Category Median

34.24

47.59

68.49

Company concentration.The fund has a lower concentration in the top three, five and 10companies compared to the category median.

Top 3

Top 5

Top 10

IDFC Classic Equity

16.32

24.37

40.45

Category Median

18.41

28.03

45.52

Therefore, it can be said that the fund is concentrated at the top in terms of sector allocation and diversified at the top in terms of stock holdings.

Turnover ratio.The fund last disclosed its turnover ratio in March 2012. It was 123 per cent against the category median of 75 per cent.

Expense ratio.The fund's expense ratio is 2 per cent which is lower than the category median of 2.56 per cent.

Risk.In terms of risk measures such as standard deviation and beta (measured over last three years) the fund has a lower level of risk compared to the category median.

Standard Deviation

Beta

IDFC Classic Equity

0.9126

0.7883

Category Median

0.9447

0.8078

Risk-adjusted returns. In terms of risk-adjusted returns like Sharpe and Treynor Ratio (measured over the last three years) the fund has lower risk-adjusted returns vis-à-vis the category median.

Sharpe Ratio

Treynor Ratio

IDFC Classic Equity

0.0244

0.0153

Category Median

0.0283

0.0237

Cash allocation. Currently the fund has a cash allocation of 8.23 per cent against the category average of 4.34 per cent.

Portfolio Strategy: Last one year

The BSE 200 Index gave a return of 17.31 per cent in the last one year while the fund outperformed with a return of 26.61 per cent. In the last one year the fund has had an average allocation of 85 per cent to large-caps, 10 per cent to mid-caps and 4 per cent to cash.

Sector

Feb-12 (%)

Jan-13(%)

Raised/lowered allocation (%)

Power Generation/Distribution

8.74

8.74

Bank Public

1.64

10.36

8.72

Cigarettes/Tobacco

6.81

6.81

Pharmaceuticals & Drugs

5.70

9.58

3.88

Film Production, Distribution & Entertainment

3.34

3.34

Finance – NBFC

2.76

2.76

Bank – Private

14.69

16.19

1.50

Engineering - Construction

2.22

2.93

0.71

TV Broadcasting & Software Production

2.93

3.64

0.71

IT - Software

15.31

10.52

-4.80

The fund raised its allocation to sectors like power generation/distribution, public banks, cigarettes and so on (see table above). It lowered its allocation to the IT-software sector.

Fund vs. Index – January 2013

Sector

Fund (%)

BSE 200 (%)

Over/under weight (%age points)

Bank – Public

10.36

4.89

5.47

Power Generation/Distribution

8.74

3.57

5.17

Pharmaceuticals & Drugs

9.58

5.65

3.93

Film Production, Distribution & Entertainment

3.34

3.34

TV Broadcasting & Software Production

3.64

0.74

2.90

Bank – Private

16.19

14.04

2.15

Finance – NBFC

2.76

1.01

1.75

Cigarettes/Tobacco

6.81

6.24

0.57

IT - Software

10.52

11.01

-0.49

Engineering - Construction

2.93

3.65

-0.72

Currently the fund is overweight vis-à-vis its benchmark on sectors like public banks, power generation/distribution, pharmaceuticals, and so on (see table above).

Company

Feb-12 (%)

Jan-13 (%)

Raised/lowered allocation (%age points)

ITC Ltd.

6.81

6.81

HDFC Bank Ltd.

4.88

4.88

Wockhardt Ltd.

4.41

4.41

PVR Ltd.

3.34

3.34

IndusInd Bank Ltd.

3.31

3.31

State Bank Of India

1.64

4.63

2.99

Zee Entertainment Enterprises Ltd.

2.93

3.64

0.71

ING Vysya Bank Ltd.

3.12

2.99

-0.13

ICICI Bank Ltd.

5.81

3.39

-2.42

HCL Technologies Ltd.

5.63

3.05

-2.58

Among its top holdings the fund increased its exposure to ITC, HDFC Bank, Wockhardt, PVR, IndusInd Bank, SBI and Zee Entertainment. It lowered its exposure to HCL Technologies, ICICI Bank and ING Vysya Bank.

Fund Manager. The fund is managed by AnkurArora and MeenakshiDawarwho have been at the helm since March 2012 and October 2011 respectively. This is the only fund currently managed by AnkurArora. The fund has shown better performance since he joined, making 2012 the best calendar year in terms of performance. This implies a good start by the fund manager.

Conclusion. Though the fund doesn't boast of a very consistent past track record, we have it in our positive watch-list because of the way it has come up in recent times due to the changes at the helm and increased diversification in the portfolio. It is also one of the better performing large-cap heavy funds in terms of SIP returns. However, at present there are better substitutes available for this fund.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

No comments:

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications
Related Posts Plugin for WordPress, Blogger...

Popular Posts