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Toning Down

The fund has reduced exposure to risky small caps for stability. Though the fund has seen several manager changes since November last year, there had been no effect on high returns generated by it

This fund had a miserable past but has steered clear of it. Though it has been relegated to a four star category in October from five star in September, this fund has been able to beat the category for the past three years consistently. In the three-year period ended January 15, 2007, its 65.23 per cent annualised return has been well above the 36.16 per cent gain of the category and a lot more than 28 per cent of the benchmark S&P CNX Nifty.

If we talk of quarterly returns, for the quarter ended December 2006, the returns were good at 17.75 per cent. Apart from generating good returns, the fund is learning to manage the market crashes. In the June quarter the fund lost just 11 per cent as compared with the category's loss of 15.35 per cent though historically it had lost more than category averags in the bearish markets. Since the start of this year, the fund had been mopping up large cap stocks slowly while reducing exposure to small cap stocks. Small caps, which used to consume over half of its assets about a year and half ago, now account for just 10 per cent of its assets. The fund has, however, not altered much with the allocation to mid cap stocks.

The fund has seen several manager changes since November last year but there had been no effect on high returns generated by it. Technology sector has the fund's highest allocation and it may not come as a surprise that Infosys Technologies is the fund's top stock holding. The fund has also held on to stocks like Thermax, Gujarat Ambuja, KPIT Cummins, Kotak Mahindra Bank, Praj Industries for the past three years.