Broad based but superior returns

FUND ANALYSIS/ DSPML T.I.G.E.R

The fund's name may convey an aggressive offering, but in reality it presents a different image.

An acronym for The Infrastructure Growth and Economic Reforms, the fund focuses on sectors that are likely to prosper from growth related to economic reforms and infrastructure development. Launched three years ago, the fund capitalised on the infrastructure run.

But unlike other infrastructure offerings, its broader mandate has enabled it to tap into sectors that core infrastructure funds do not like healthcare, FMCG, textiles.

The portfolio is, probably, too well diversified and this year averaged at around 65 stocks. RIL, the largest holding, is currently at less than 6 per cent and the rest are all below 4 per cent. One can expect such diversification from a mid-cap fund, but this is surprising from a predominantly large-cap offering.

Nevertheless, its tilt towardsgrowth investing has enabled it to deliver superior returns. The fund's most prominent holding "� RIL "� has been there since inception, while around 20 stocks have been held continuously for at least 30 months.

But when looked in perspective, of the 60-odd stocks in the portfolio, it is not significant enough to conclude that the manager adheres to a buy-and-hold strategy. The rankings, as on August 10, 2007, show the fund in a very favourable light. And considering its broad investment mandate, it won't run out of good ideas.