Equity investors must have a long-term horizon, all the more so in the case of this fund.
Over the short term, the fund’s performance can sharply diverge versus peers. Investors need to stay grounded and not get swayed.
For instance, an aversion to cash calls and big bets in the basic materials sector relegated the fund to the bottom quartile in the downturn of 2011. However, the same helped the fund deliver top quartile performance in 2012.
The fund landed in the bottom performance quartile in 2013 as exposure to the stocks from the cyclical sectors didn’t pay-off. This year, the fund has been putting up some good numbers.
