This fund had quite a slow beginning. It didnt put in a noteworthy performance in the first three years of its launch, but has shown commendable consistency in the past three. It delivered more than the category average in bull runs and shed less than the category in bear phases. The fund plays it safe and does well.
It is an open-ended scheme, with a mandate to invest 65-75 per cent in equity and the rest in debt. The fund followed this mandate at most times. The fund manager likes to have a diversified portfolio in terms of both stocks and sectors. Last year, the equity portfolio had an average of 73 stocks, but the allocation to the top five holdings was below the category average. The manager likes to invest heavily in mid- and small-cap stocks. There have been times when large-caps accounted for less than half of the equity portfolio.
The fund manager plays it safer on the debt side. He sticks to high-quality, low-maturity papers, investing primarily in floating rate papers and government bonds. He refrains from investing in debentures and commercial papers. This approach allows the fund manager to balance the credit as well as interest rate risk.
This is a safe fund and will not give you headline-grabbing returns, but it wont take you through earth-shattering downfalls either
