The fund targets the same sectoral weights as the BSE 200, subject to the flexibility of selecting stocks within a particular sector to generate longterm capital growth, income generation and distribution of dividend. In its eight-year history, the fund has underperformed only once, in 2003, compared to its benchmark, but it started outperforming its category average only from 2006. This is largely attributed to Mahesh Patil taking over as manager in November 2005.

The performance during market upswings has been mixed. The large-cap focus has limited its ability to benefit from rallies led by mid-cap stocks, but its ability to change track quickly in sync with market trends provides a higher salve.

In 2009, it delivered 90.45 per cent, when the category average was 80.19 per cent. "We got into good quality stocks at distressed valuations. We also bought into certain stocks when the de-leveraging story began to play out and firms were able to raise money as liquidity eased," says Mahesh Patil, head of equity—domestic assets, at Birla Sun Life Mutual Fund. While Patil does adhere to this strategy, there have been deviations.

A long-term track record of good performance and proven ability to ride out corrections, with a focused exposure to blue-chip equities, makes the case for this fund. Over the past five years, it has delivered an annualised return of over 23 per cent, placing it among the top funds in the category. That it is among the few to have bettered their respective benchmarks each year in the past five years also adds to its appeal.