Though the fund has done well over past five years, the investors must be prepared to tolerate short-term underperformance in case there is a sudden rally that overlooks fundamentals.
Should you invest now?
The scheme’s portfolio has cut its net exposure to Indian stocks over past two years. Compared to 62 percent in September 2016, it came down to 55 percent in September 2017 and to 45 percent now, in line with rising valuations of quality companies. High cash levels and exposure to overseas stocks have helped the fund to weather recent sharp correction in Indian stocks. If markets remain weak the fund manager may get more investment opportunities in terms of bargain deals in quality stocks.