This fund is a middle of the road performer. It offers an average return with a lower than average expense ratio. The fund's debut was marked by a huge return on its portfolio, the fund posted a whopping 10.09 per cent return for the one year ending October 13, 2001. This was the period when the fund deviated radically from the standard cash fund recipe by investing heavily in corporate debentures of Ranbaxy, Nicholas Piramal, GE Capital etc.
In addition, fund performance has been consistently outperforming the category average with only exception of 2002 when it fell short of the category average by a marginal difference.
In the recent times the fund has moved more into quality certificates of deposits (CDs) and commercial paper. As on April 30, 2005 the fund held over 27 per cent of its portfolio in CDs and around 21 per cent into CPs, while keeping approximately 40 per cent of its portfolio in cash as on April 30, 2005.
Chola Liquid also has a lower than average expense ratio (0.30 per cent) and a low minimum initial investment limit of Rs 1,000.
This article was originally published on July 01, 2005.
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