A year ago Kunal took over managing the Aditya Birla SunLife Pure Value Fund and started implementing his relative value approach which allows him to participate across markets including growth sectors but with a value orientation and at the same time helped him avoid value traps. Kunal looks at intrinsic value more than classical value filters like P/B, dividend yield etc.
This approach has seen the fund drive into top quartile, comfortably beating the market and peer group average.
The fund allocates 50% (+/-10%) to large caps and 50%(+/-10%) to mid and small caps. Current allocation stands at 43% large caps and57% mid and small caps. Healthy participation in mid and small caps has aided performance considerably.
Timely entry and judicious profit booking in PSU banks, auto components, defense, IT and power transmission stocks have contributed significantly to fund performance.
Kunal believes that a multicap allocation strategy coupled with a relative value mindset allows him to explore the entire market, but with a strong sense of margin of safety – which helps protect downside even as thequest for alpha remains unwavering.