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Moderate Expectations

This consistent performer is suitable for an equity investor who expects above average returns with average volatility. The fund focuses upon growth-oriented large-cap stocks

Don't let the scheme name confuse you; it is not an index fund but a diversified equity fund. As per its mandate the portfolio size will be restricted to 30 stocks and not the 30 BSE Sensex companies.

Over the past three years the fund has been consistent in delivering impressive returns, above the category average. It was in 2004 that the fund first made its mark - it emerged as the ninth best performer out of 81 funds. The fund essentially has a growth focus and is a large cap player. Consequently, it bears a small exposure to mid caps and a negligible allocation to small cap companies.

It is ideal for an equity investor who expects above average returns with average volatility. The fund bears a below average risk grade and there is not much churn in the portfolio. So far the fund manager has applied the buy and hold strategy for select Bluechip companies and maintained a significant position in these stocks. However, the fund is clearly over weight on the technology sector with more than 20 per cent of its funds committed here. So the fund may not be advisable for portfolios which already bear a high exposure to the technology sector. The rest of the portfolio is evenly diversified across sectors.

The fund has seen a change in management, with Krishna Sanghvi taking over in January. It remains to be seen if the new fund manager sticks to the old style. So far the fund is on track with the rest of the category with the year to date return at 7.53 per cent (as on June 20) compared to the category average of 7.36 per cent.