Best Mutual Fund for Long Term Investment - IIFL India Growth Fund

Best Mutual Fund for Long Term Investment - IIFL India Growth Fund

by Nutan Gupta Last Updated: 2017-01-03T04:30:00+05:30

IIFL India Growth Fund is an open ended equity fund. The investment objective of the scheme is to generate long term capital appreciation for investors from a portfolio of equity and equity related securities. Launched on October 30, 2014, the fund has given returns of 12.36% since its inception.

IIFL India Growth Fund has outperformed its benchmark Nifty50 over a 1-month, 3-month and 1-year period. Managed by Prashasta Seth, the total assets under management (AUM) of the fund stands at Rs. 272 crore as on 31st January, 2017. The fund has a total of 20 stocks in its portfolio. The top 5 holdings include HDFC Bank, Power Grid Corporation of India, Castrol India, HCL Technologies and Tata Motors.

Trailing Returns (%)
  1-month 3-month 6-month 1-year
Fund 8.3 10.45 5.90 36.58
Nifty50 6.35 9.97 2.45 23
Category 6.72 10.82 4.88 31.08

The investment philosophy which the fund manager follows is to look for companies which are growing at a CAGR of 15-20% and are trading at a reasonable valuation. The scheme invests in 20-25 high conviction stocks rather than typical 50-70 stocks in a mutual funds portfolio. This philosophy has generated significant alpha. Moreover, the scheme has no exit load along with lowest expense ratio, ensuring liquidity, flexibility and higher return to investors.

The fund invests around 65% of its corpus in large-cap stocks, while 33% is invested in mid-cap stocks. As far as the sector allocation is concerned, the fund has a higher exposure to the finance sector. Since its inception, the fund has outperformed its benchmark on yearly basis for 99% of the weeks.

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