AIG India Equity mutual fund has outperformed its category average twice in past four years.
FUND FACTSINCEPTION: June 2007
CATEGORY: Equity Multi-cap
TYPE: Open-ended
AUM: Rs 142.96 crore
BENCHMARK INDEX: BSE 100
WHAT IT COSTS
NAV:Rs 10.95 (G) | Rs 10.95 (Div)
MIN INVESTMENT:Rs 5,000
MIN SIP AMOUNT:Rs 1,000
EXPENSE RATIO:2.40 per cent
EXIT LOAD:1 per cent if redeemed within one year
WHO SHOULD INVEST IN IT?With five continuous quarters of underperformance, the fund's start was not the best. It changed direction from March 2009. Its tiny corpus sports a compact portfolio. From being categorised as an 'Equity: Large & Mid Cap' fund, four months ago it moved to the 'Equity: Multi Cap' one.
Its allocation to small caps has never exceeded 15 per cent. Its bouts of performance makes it a risky bet but with rich rewards. The fund failed to impress in 2010.
Fund manager Huzaifa Husain says, "The market stumbled initially but appreciated later in the year. We stuck by our fundamental research indicators and did not change the portfolio stance. Hence, we underperformed."
MEET THE FUND MANAGERWhen fund manager Huzaifa Husain took over, he revamped the portfolio expecting the domestic recovery to be stronger than the global one.The move paid off. In terms of sector bets and individual stock picks, Husain does not follow the herd.
Data and analysis of the fund have been sourced from Value Research.
