IDFC Premier Equity is a equity diversified fund with a clear tilt to mid-cap and small-cap companies. As of July 2010, the fund had 85% exposure to mid-cap & small-cap stocks; 15% exposure to large-cap stocks.  The weighted average market cap for this portfolio is around Rs. 4000 crores. The portfolio P/E ratio is 34, a very high number. The portfolio is heavy on consumer goods & services stocks, and the fund has benefited from a recent run-up in these stocks.  The fund 3-month’s return is 23%, 1-year return  is 59%, 3-yr absolute return of 109%, and 5-yr absolute return of 238%.

This fund has the highest relative strength rating of 100. The fund gets a 5 Stars rating for its superior long-term & short-term performance. 

This fund is recommended in the satellite portfolio and could provide significant alpha returns. Alternatives to this fund includes ICICI Prudential Discovery Fund (Relative Strength Score: 98) and Sundaram Select Midcap (Relative Strength Score: 98).

Recent Holdings of IDFC Premier Equity Plan A (31/7/2010). Several of these stocks have run up recently.

________________________________________________________________

Fund Ratings:

5 Stars – Superior and consistent performance over short-term and long-term among its peers.

4 Stars - Good performance over short-term and long-term among its peers. Occasional underperformance is seen.

3 Stars – Steady/Par performance over short-term and long term. Periods of underperformance is seen.

Methodology:

1. Score is percentile score (max: 100%)
2. Score is weighted average across different periods
3. Weights vary whether looking for short-term or long-term performance
4. Score is across fund universe (over 900 funds with AUM of at least Rs. 10 Cr)
5. Long term is: 6 months – 5 years
6. Short term is: 1 week – 1 year
7. Overall score is achieved by combining long-term and short-term performance

Labels: MIDCAP, SATELLITE, SMALLCAP