This fund has been a consistent outperformer in the category. It has always figured in the top-5 funds in terms of annual returns in its category, with only exception in the year of 2003 when its rank slipped to 10 out of 41 funds. The fund has also maintained its expense ratio under tight control averaging it around 0.75 per cent through out its lifetime, although higher than the category average.
On the portfolio front the fund has maintained a quality portfolio with focus on AAA rated securities and P1+ papers. However, the fund held a major portion of its portfolio in cash and equivalent during the period from February 2004 to September 2004, this was the period when the AUM of the fund grew from Rs 2,027 crore to Rs 5,562 crore.
The fund is also low on risk as it has always maintained its average maturity profile below 150 days. The fund offers an optimal combination of low risk and high return, that too with great consistency. The fund would appeal to the conservative and risk averse investors. But, the minimum investment limit of Rs. 1 lakh makes it out of reach of many individuals.
This article was originally published on August 01, 2005.
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