IDFC Mutual Fund has officially announced that Kenneth Andrade, who has been managing IDFC Premier Equity Fund since June 2006, has moved out from the fund house. The fund house has also intimated investors that Punam Sharma, Head of Research and Fund Manager will maintain continuity of thought process and investment framework. Punam has been involved with the management of IDFC Premier Equity Fund since its inception in October 2005. She has also been associated with the fund house since the past 14 years. Kenneth will continue to be with the fund house for the next 3 months to ensure that the transition is done in a smooth manner.
IDFC Premier Equity Fund is a multicap fund having a major part of its corpus in the midcap stocks. The fund is known for its consistent performance across market cycles. We at iFAST Research have always said that Kenneth's ability in identifying stocks that have the potential to grow big, has been the biggest strength for this fund.
In May 2012, we had updated our investors about IDFC Premier Equity Fund being open for lump sum investments. We had then recommended an entry into this fund via the lump sum route. Our conviction behind this recommendation was on these lines.
IDFC PEF managed by Kenneth Andrade, who is known to be a maverick at stock picking, has been able to outperform its peers during all market phases.
When the fund made it to our recommended funds list for the first time in 2014, our communication to our investors went as given below:
As far as the new entrants are concerned, the most promising fund in the multicap space i.e. IDFC Premier Equity Fund has been the favorite of many of our investors. It is only last year that we had started classifying this fund as a multicap, while in the previous years the fund belonged to the midcap space. The fund always used to be the top performer in whichever categories it was placed. However, we could not make it a part of our earlier recommended lists on account of its mandate that it will not accept lump sum investments. Though the mandate remains the same, we have decided to give thumbs up to this fund and hence Kenneth's biggest bet makes an entry into our recommended funds list for the first time.
Hence, it is clear from our earlier communication that we had a strong conviction in the expertise that Kenneth was bringing to the fund, in terms of strategy and stock picks. In this scenario, I thought it is appropriate to inform our investors on what needs to be done with this fund in the coming months. A fund manager who taught investors how to be disciplined with their investments by allowing only SIPs has put retail investors in the lurch with his decision to exit. Hence, our advice to the existing investors is not to press the panic button but to continue with their SIPs into IDFC Premier Equity Fund. iFAST Research will be in the wait and watch mode to see how well the fund house manages this transition before we recommend any action on IDFC Premier Equity Fund.