Prajna Capital - An Investment Guide

This scheme invests at least 65 per cent in mid- and small-caps. The balance can be in other equities, including American Depository Receipts ( ADRs ) and Global Depository Receipts ( GDRs ). Small- and mid-caps are defined as equity stock with market capitalisation equal to or lower than that of the stock with largest market capitalisation in the CNX Midcap 200 Index. Its return of 81 per cent (category average: 64 per cent) in 2007 and 120.44 per cent (category average: 98 per cent) in 2009, got noticed. Its savvy sector bets helped the fund. The fund shirks debt and prefers cash. Interestingly, the fund delivered impressive returns during the latest rally (March 9-December 31, 2009), though cash exposure averaged at around 14 per cent between February and April. Only from May, after the election, was the fund more or less fully invested. It rode on all the economically sensitive sectors like financials, industrials, consumer discretionary and commodities, which paid off well. With t...