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A Consistent Player

This fund's ability to generate returns during the good as well as the bad times is now well-proven

Launched in November 2000, Birla MIP is one of the better funds in the MIP category.

A track record of consistent performance has helped the fourth largest MIP to be always ranked among the top half in the category. A proactive approach to fund management has been the hallmark of this fund. The fund manager has been quick to switch between the maturity profiles, as well as the debt and equity composition, in accordance with the market conditions.

During 2001, the fund maintained an average exposure of 3.19 per cent to equities, as per the month-end portfolios. High allocation to debt helped the fund steer comfortably through the turbulent equity markets. As a result, the fund was ranked third in the category of nine at that time. This performance was over-shadowed by exceptional returns that the fund delivered during the year 2002, which particularly stands out in the fund's track record of consistent performance since launch.

A portfolio with an average maturity period of around 3 years during 2002 helped the fund make the most of the falling interest rates in the economy. As a result the fund managed category-beating returns of 15.36 per cent.

Since the start of 2003, when the tide turned favorable for the stock markets, the fund increased its equity exposure to 12.51 per cent on an average basis.

The fund hit a rough patch during 2004 as a result of rising interest rates, the only year when the fund missed the category average. But that should not bother an investor considering the kind of performance that the fund has delivered in the past.

On the equities side, though the fund mostly sticks to large caps but is often aggressive with its sectoral bets. At March end, the top three sectors accounted for as much as 71.29 per cent of its equity portion. SBI, Bharti Tele Ventures and Glaxosmithkline Pharma are some of the favourite stocks of the fund.

The fund's ability to generate returns during the good as well as the bad times is now well-proven.

What adds to the confidence of an investor is the fact that the fund has delivered negative returns only in seven months since its inception, none of which have been consecutive.