This is an open-ended balanced scheme and did well in recent times. Its five-year annual returns are 21 per cent five per cent higher than its category. However, the fund had its ups and downs.
The fund takes contrarian stands occasionally and focuses on growth stocks. Half the equity portfolio comprises mid and small-cap stocks, but the fund manager plays safe by ensuring that the portfolio is not concentrated. It has had an average of 42 stocks in the past one year with no stock holding more than six per cent of the portfolio.
On the debt front, the fund opts for G-Secs and bonds. The debt portfolio is actively managed, but the fund manager likes to stretch the maturity and go for duration calls.
By its mandate, the fund keeps its equity allocation between 50-75 per cent. The upper limit was tested a few times, but averaged 69 per cent in the past year. The equity portfolio has never fallen below 55 per cent. It is used to earn returns, while debt is used to safeguard in testing times.
Overall, the funds long-term performance makes it a good pick
