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Finding its Feet

Fortis Mutual Fund still has to prove itself

Fortis Mutual Fund, a relatively new player, it is still to prove its case and define its position in the industry.

In September 2004, it came onto the scene with a bang - three debt schemes, one MIP and one diversified equity scheme. And investors flocked to it.  Going by the standards at that time, it had a great start in terms of garnering money. Mopping up over Rs 2,000 crore in five schemes was not bad at all.

The fund house has not been too successful in the equity arena, in terms of assets. Though it has seven equity schemes, it is debt and cash funds that corner the major portion of the assets. Most of the schemes are pretty new, and the two that have been around for a while have a 3-star rating each.  The last two were Fortis Sustainable Development (April 2007), which received a rather poor response, and Fortis China India (October 2007).  

Fortis Flexi Debt has been one of the better performing funds, after a dismal performance in 2005. It currently has a 5-star rating. None of the other funds really stand out.

One of the problems the fund house is facing is over the issue of good talent, or rather, the lack of it. In 2007, Prateek Agrawal left to join Bharti AXA. At the time of his exit, he was managing all the equity funds at Fortis Mutual Fund. This year, Mahendra Jajoo, head of fixed income, also quit.

Explanation of the data tables and graphs