IDFC Sterling Equity Fund



IDFC Sterling Equity Fund is an open-ended, mutual fund investment scheme which strives to generate capital appreciation from a diversified portfolio comprising of equity and equity related instruments. Launched in March 2008, this fund is benchmarked against the Index Nifty Free Float Midcap 100. This mutual fund investment scheme will predominantly invest in small and midcap equity and other equity related instruments. Investors also need to understand that their principal will be at moderately high risk. Like several other income funds, this mutual fund investment is suitable for investors looking at creating wealth over a long period of time. The fund also has an expense ratio that is lower than the median of the India Small/Mid-Cap category.

This fund was formerly known as the IDFC Small & Midcap Equity Fund and was later renamed as IDFC Sterling Equity Fund, with effect from 24 October 2011. This scheme ranks amongst the top mutual funds in India and is currently ranked second in the ‘Small & Mid Cap category by CRISIL for the quarter ended December 2017 which remains unchanged from the previous quarter. The minimum investment amount for investing in this fund scheme is Rs. 5,000. If an investor opts to choose the SIP investment route, then the minimum required investment is Rs. 1,000. However, it must be stated that IDFC Sterling Equity does not qualify for sec 80C ELSS benefits.

Although the leadership and management at IDFC Sterling Equity have witnessed several changes in the past, this fund is currently managed by the astute stock-picking team of, Mr. Anoop Bhaskar and Daylynn Pinto since October 20, 2016. Mr. Bhaskar is a B.Com (H) and MBA(Finance) from Pune University.

Another point which needs to be made is that although this mutual fund investment has seen several leadership changes, the management team hasn’t completely overhauled the core-investment process. This has ensured that there is some sort of continuity in the investing process just like his predecessors. Mr. Bhaskar also looks to the IISL Nifty Free Float Midcap 100 Index and lines up the portfolio’s sector weights with those of the index. Among its top three holdings, the fund has exposure to CBLO, Future Retail Limited and Minda Industries Limited. Furthermore while investing, Mr.Bhaskar scouts for growth-oriented companies available at reasonable valuations while also having a decent amount of promoter holdings and good cash generation. Although his tenure has been brief up until now, the fund has delivered an impressive performance which is reflected in the fund’s Morningstar Analyst Rating of Silver.

Being a mid-cap fund, most of the investor’s money is invested in medium-sized companies. This is reflected in the fund’s allocation as half of the fund’s money is allocated to stocks of mid size companies, a quarter to stocks of small size companies while the remainder is allocated to those of large companies. The performance of this fund is even more impressive when you look at staying invested for a longer time frame like three and five years. If you manage to stay put with your investments within this time frame, you can certainly enjoy better chances of an alpha generation of the funds.

The Bottom Line
If you’re looking to invest in top mutual funds in India and aiming to generate high returns while also having some surplus money to put aside for a few years, IDFC Sterling Equity Fund is ideal for you. This fund is great for Long-Term Wealth Building so please do not hesitate to get in touch with our financial advisors. Our team of professional financial advisors not only provide transparent advice but can also deliver customised, tailor-made plans, matching your precise circumstances, investment needs, and financial goals.