Launched in January 2006, the fund is relatively new in the tax planning category but has made a mark. In the three years ending November 30, 2009, the fund delivered an annualised return of 13.38 per cent against the category return of 7.31 per cent. Although its performance during the market run-up has been average, it protects against the downside. Since its launch, the fund has guarded investors better than other tax planning funds. The bias towards large-cap stocks and a diversified portfolio has helped the fund but the trade-off has been in returns during the market rally.
In the recent bear run (January 8, 2008 to March 9, 2009), the fund shed 50.56 per cent against its categorys 56.92 per cent. While in the bull run (March 9, 2009 to November 30, 2009) that ensued, it delivered 105.57 per cent, almost equal to the categorys 104.17 per cent.
The fund largely maintains a buy and hold strategy. But, it does take short-term bets. Of the 186 stocks it has invested in so far, 66 of them (35 per cent) have appeared for five months or less.
