With a sharp perk up in recent times, the fund seems to have struck the delicate balance. But don't jump now. This new fund has to sustain its show before it can be termed a solid hybrid pick.
26-Mar-2002 •Research Desk
With a sharp perk up in recent times, the fund seems to have struck the delicate balance. But this new fund needs to show some more evidence before it qualifies as a good hybrid pick.
Launched in the middle of tech led bull market, the fund naturally started with a tech heavy portfolio. By March 2000, it's tech holdings stood at 33 percent. The fund could only take a short ride on the tech boom. But remained a tech believer through the tech wreck. This took its toll on its worth. After a wild ride, it hit a low of Rs 6.65 by September 2001, a steep price for losing balance.
The fund has been equity tilted with its allocation -- an average 63 percent in equities and the rest in bonds. The equity bias has been towards large-cap growth stocks. And in bonds, it emphasized corporate bonds and a small gilt exposure. And this allocation was almost passively managed. It maintained a conservative stance with its maturity.
In recent months, the fund has gained diversity. This was easy done, by just reducing its technology bent. It's technology weightage drastically reduced to 7.61 percent now has made it evenly diversified. The fund's selectivity with few energy and healthcare stocks has also worked favourably. The changed way, market upsurge and some fine stock picking has helped it cover the lost ground rather quickly. It has gained 15.36 percent year-to-date through March 22, 2002 and was up 15.58 percent in last quarter of 2001.
But don't jump now. This new fund has to sustain its show before it can be termed a solid hybrid pick.