One of the most consistent performers in its category. Barring 2008, it has always been amongst the top five in terms of performance, including the best performer in 2007 and 2009.
In 2008, the fund manager’s maturity bets backfired. Over the five months ended March 2008, the average maturity of the fund’s portfolio was 3.33 years (category average: 1.94 years). In the last quarter, the average maturity was 1.32 years (category average: 1.54 years). And when yields of 10-year benchmark paper came down, the fund delivered a return of 3.63 per cent (category average: 5.33%).
The assets of the fund have declined from Rs 1,684 crore (September 2010) to the current level. The expense ratio (1.10%) is slightly higher than the average.