Historically, the fund has been an average performer. However, good performances in the years 2003 and 2004 have boosted the long-term performance record of the fund. On the equity side, the fund does not mind taking a high exposure to mid- and small-caps. As per the portfolio for November 2005, such stocks dominated the portfolio, accounting for more than 61 per cent of the fund's equity holdings. In fact, the fund donned a mid-cap orientation since the mid of 2003, as some of the large-caps made way for small-caps. The fund identified the rally in the smaller stocks early enough, which has rewarded the fund handsomely. At sector level, the fund maintains a well diversified portfolio. In recent times, sectors like technology and automobiles figured prominently in the portfolio. At the stock level, the fund prefers to hold large number of stocks in small proportions.
On the debt side, the fund is highly quality conscious. Anything rated below AAA has rarely figured in the portfolio. The fund bears low credit risk. Uncertain markets led the fund to exit from its gilt holdings during mid of 2004. Prior to that, gilts used to account for around 15 per cent of its portfolio.
This article was originally published on December 27, 2005.
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