The erstwhile Birla Sun Life Income has had its share of ups and downs. In the recent past, 2006 - 2008 was a great run. After hitting a rocky patch for two years, it was once again a winner in 2011. Though Certificates of Deposit are the fund’s favourite, at times a high allocation to G-secs is apparent - a 68 per cent allocation in October 2009 is a case in point. If one looks at the average maturity, this fund can well be referred to as a dynamic one. Though the maturity has been on the lower end in the past year, there have been instances when the fund has been opportunistic enough to take aggressive maturity bets. Between December 2007 and February 2008, the average maturity was around 15 years (thanks to the huge allocation to G-Secs). Later that year, it again shot up to 14 years. This helped the fund impress in the December 2008 quarter but was punished for its aggressive stance in the very next. Its expense ratio is among the lowest in the category.
This article was originally published on March 22, 2012.
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