Investing in the domestic cyclical theme worked for our tax fund: IDFC MF
Daylynn Pinto is a senior member of a young equity fund management team at IDFC Mutual Fund. Pinto manages just two funds: IDFC Tax Advantage, from October 2016 and IDFC Sterling Value along with Bhaskar also from the same year. The tax fund has done well. At 76.83 percent, it has been among the best performing tax-saving schemes over the past one year. Pinto talks to Moneycontrol’s Vatsala Kamat and explains his strategy.
The IDFC Tax Advantage Fund has topped the charts, beating the category over one and three-year timeframes. How has this outperformance come about?
The tax advantage fund primarily has a multi-cap approach. Large-caps have been in a broad range of 45 to 55 per cent, while the mid-and small-caps comprise the balance.
I think a part of the outperformance stems from the conviction about the investing approach, in spite of some adverse patches and pain for mid and small-caps in 2018-19 and a part of 2020. Persevering and being disciplined about the market capitalization allocation helped when the cycle turned.
Another reason for the fund's outperformance is …
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