Suggested InvestmentHorizon: >3 years
Time taken to doublemoney: N.AThe fund manager would adopt a three-pronged approach for stock picking. As a first step identify companies that are leaders with the highest market share, ROE/ROCE. Secondly, the fund manager would identify challengers with the possibility of superior earnings growth versus leaders due to market share gains and acceptable average ROE/ROCE of more than 15%.
Finally, the fund manager would look to identify new themes, stocks and sectors which are witnessing cyclical tailwinds. Using this strategy to pick stocks and create a portfolio, the fund manager hopes to generate alpha.
Even though there are several focused funds already, financial planners feel there is merit in the new fund offer due to its strong past performance in the equity space. Several of its existing funds in large, large and midcap, flexicap, ELSS are among the top performers in their respective categories over the last three- and five-year peri