The fund has taken riskier bets quite frequently as the average maturity of its holdings has exceeded 200 days on many occasions, unlike most of its peers. But the fund has been able to convert all those riskier bets into above average returns for the investors. In a category where expense matters the most, the fund has been able to maintain a below average expense ratio. As on March 31, 2005 the fund had an expense ratio of 0.50 per cent. The fund's exposure to AAA rated corporate debt has been fluctuating over a wide range. It had 14.48 per cent of its holdings in AAA rated debt instruments as on April 30, 2004 but April 2005 data reveals close to 70 per cent of portfolio in such instruments. Every time the fund has reduced exposure to corporate debt, it has loaded its portfolio with cash and equivalents like call money and term deposits.
The fund is quite unique in its investment philosophy in a category where the funds look more or less similar.
This article was originally published on March 10, 2005.
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