Omprakash S. Kuckian, fund manager, Reliance Capital Asset Management Ltd, manages Reliance Regular Savings Fund (Balanced) Growth which won the Morningstar moderate allocation award. He talks about the fund’s strategy. Edited excerpts:
Graphics: Ahmed Raza Khan / Mint
What helped you emerge on top?
Practical asset allocation and stock selection were key in achieving the results.
This fund seeks the best of both worlds by investing in both equities and fixed income instruments. It focuses on reducing volatility of returns by increasing/decreasing equity exposure based on the market outlook and using a core debt portfolio to do the rebalancing. Also, it brings the twin benefits of growth from equity markets by investing in large- and mid-cap stocks and steady income from debt markets. The overall fund strategy and investment philosophy along with the right portfolio mix has enabled the fund to be a top performer.
How did you handle the period between January and April 2009?
Our strategy is to invest in well-managed, high-quality large- and mid-cap stocks with attractive valuations and the potential to grow in the long term. Appropriate portfolio mix helped us.
What are the sectors that look promising in the mid-cap space?
Indian infrastructure is seen as an excellent wealth creation opportunity. Banking is well-positioned, but we will take a call after the credit policy.
With the interest rate cycle beginning to harden do you think equities will begin underperforming?
We are bullish on the Indian economy and well-managed Indian companies from a medium- to long-term perspective. We are less concerned about periodic changes in the interest rate cycle, though we keep a close watch.