Given the performance in 2007, 2008 and the recent market run up, it is a worthwhile choice in the tax planning category. In the three years ending November 30, 2009, it has been the second best performer in tax planning category, giving 16.77 per cent against the categorys 7.31 per cent. In 2006, it delivered 31.46 per cent against the categorys 29.77 per cent. In 2007, it beat its category by seven per cent. Again in 2008, when the market tumbled, it shed 46.85 per cent against 55.67 per cent fall of an average equity tax planning fund.
The aggressive cash and debt bets taken by the fund manager in the second half of 2008 helped the fund.
In the recent rally (March 9, 2009 to November 30, 2009), the fund has delivered an astounding 125 per cent against the categorys 104 per cent rise.
Some sectoral bets worked in favour of the fund. Allocation to construction stocks was increased from eight per cent in December 2005 to 24 per cent in February 2006. The fund also benefited from allocation to the engineering sectors in 2006. Increased allocation to energy sector also worked for the fund in 2007.
