SEVEN MUTUAL FUNDS
Warren Buffett's 'Buy-and-Hold'
Mantra
SARASIJ MAJUMDER
Warren
Buffett's favourite holding period is forever. Many of his equity portfolio were hold for
decade(s). However, the same cannot be applied for Indian mutual funds ,
though. Only a few mutual funds have crossed
the BENCH MARK, on long term basis, if above principle is applied. I identified
those mutual funds that have, in many ways, managed to hone the art of
'buy-and-hold'. To find such funds, we applied the following filters: The fund
should hold stocks for five consecutive years. Long-term holding constituted at
least 50 per cent of the portfolio
Long-term
holdings account for all the outperformance
|
Name of
the scheme
|
Number of long-term stocks
|
Average allocation of long-term holdings (%)
|
Excess returns by the long-term holdings (%)
|
Average excess returns the by fund (%)
|
|
Kotak
Flexicap
|
45
|
65.9
|
2.6
|
2
|
|
Kotak
Emerging Equity
|
51
|
55
|
5.1
|
1.8
|
|
Franklin
India ELSS Tax Saver
|
41
|
55
|
12.2
|
0.9
|
|
Parag
Parikh Flexicap
|
20
|
54.5
|
32.1
|
3.6
|
|
Kotak
ELSS Tax Saver
|
37
|
54.1
|
6
|
0.6
|
|
DSP Small
Cap
|
62
|
52.9
|
17.3
|
9.3
|
|
Kotak
Small Cap
|
59
|
51.8
|
8.6
|
4.8
|
Just
like only some of Buffett's holdings have contributed to most of his
portfolio's stellar performance, a select few stock picks of the above funds
have more than made up for any mistake the fund might have made in their
investment journey. So, let's delve deeper and find the stock-picks that have
helped them outperform their benchmark for some years.
Kotak Flexi- Cap
The
fund has been under the steady hands of their Chief Investment Officer -
Equity, Harsha Upadhyaya, for over a decade. While its long-term holdings, on
average, comprise nearly two-thirds of the portfolio, currently, they
constitute over 80% of the PORTFOLIO.
Kotak Emerging Equity
Similar
to the flexi-cap fund, Kotak Emerging Equity also has a history of long-term
holdings making up over 80 % of its portfolio. Presently, the number stands at
62 %.
Having
a mid-cap mandate,
the fund has picked out many remarkably performing stocks.
Franklin India ELSS Tax Saver
This
two-decade-old fund has changed FUND MANAGER several times. Yet, this has not
had a significant impact on its long-term holdings, and performance, which comprise over 40 % of its portfolio.
Interestingly,
the fund's top three performers have been banking stocks, with HDFC Bank being
a constant feature for the last 15 years.
Parag Parikh Flexi Cap
Parag
Parikh Flexi Cap is perhaps the CHOOSIEST when it comes to stock selection,
considering it has dabbled in about 100 companies in its more than 10-year
history.
At
one point, over 70 per cent of the portfolio were long-term holdings.
Kotak ELSS Tax Saver
Another
fund from Kotak's equity franchise makes our list. Like Kotak Flexi-cap, this
fund is also managed by Harsha Upadhyaya (since August 2015). With similar
traits and management style, this fund, too, has proven fruitful for its
investors.
DSP Small Cap
What
started as a micro-cap fund in 2007 has remained a 'true-to-style' fund to this
day. One of the reasons is that its fund manager, Vinit Sambre, has been
overseeing this fund since June 2010.
Kotak Small Cap
In
August 2019, over 90 per cent of the fund's portfolio comprised long-term
holdings, an impressive feat.
The
erstwhile mid-cap fund became a small-cap fund in 2018 following SEBI's mandate
on restricting AMCs to one fund per category.
If
you want to see the HOLDINGS of each MF, look at “FACTA”.
I
will recommend to have a BASKET of MF—4 Large Cap, One ELSS for TAX saving
Purpose, One with MID CAP, and One with SHORT CAP flavour
References:-
Information collected from below listed Weekly/Daily
1.0
Economic Times.
2.0
Outlook-Money.
3.0
Investopedia.
4.0
Mint.
Further Read:https://sarasij1majumder.blogspot.com/2024/01/what-is-difference-between-wealth.html
Comments
Post a Comment