Markets are touching new high almost every day.
There is elation in the market, but a sharp fall can upset the current party.
To deal with such anxiety, it makes sense to be with schemes with focus on
large-sized companies because the possibility of a massive fall in large-sized
companies is not as big as in mid- and small-sized companies. Also, large-sized
companies are better equipped to deal with high volatility given the strength
of their balance sheet, dominant market share and better cash flows from
operations. Among large-cap schemes, Birla Sun Life Top 100 should serve as a
good investment option. Managed by Mahesh Patil, the scheme follows a
buy-and-hold strategy and dedicates a large part of its portfolio to large-sized
companies. In the past three years, Birla Sun Life Top 100, a five-star rated
scheme, has not only beaten its benchmark, Nifty 50, but also its peers. In the
past three- and five-year periods, the scheme has delivered 11% and 17% returns
(compounded annual growth rate), while Nifty 50 has given 8% and 12% returns.
In the past six months, Patil has enhanced exposure to contrarian bets such as
energy stocks. Though these stocks may be out of favor in the market, they have
earnings' visibility in the coming quarters.
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