Mutudl Fund Insight

ICICIdirect Mutual FundValue 50

Investment is an insightful mixture of science and art.

And the raison d'être of Value Research is to digest the

science and provide investors an insight into the art of

intelligent investing. The Value 50 is a step in that direc-

tion. In fact, the Value 50 is our endeavour to serve that

category of investors who feel lost in the jargonised

world of betas, standard deviations and Sharpe ratios

and yet have an insatiable urge to invest and earn

returns. That is not to say we are unmindful of the needs

of our number-crunching customers. They are well

served by the Value Research Scorecard, which is intend-

ed to be a standard measuring scale against which the

performance of every Indian mutual fund can be meas-

ured. Since meaningful comparisons can only be made

between funds that are alike, a major effort going into the

Scorecard is aimed at categorising the funds accurately

so that we do not end up comparing apples with oranges.

However, the financial goals of some investors are not

as finely classifiable as these fund categories. Their

needs are simpler and they are better served by a small-

er selection of funds, which is divided among fewer cat-

egories. Using the Value 50, all that you are required to

do is to decide on your asset allocation between equity

and debt, or maybe not even that if you are investing in

balanced funds. After that, simply put the bulk of your

investments in a core fund of that category and invest the

remaining in any of the non-core categories that suits

your goal. Moreover, unlike the Scoreboard, the Value 50

has an element of subjectivity. We have reasons for

choosing the funds we have, which go beyond just num-

bers, and we have given you a flavour of those reasons by

saying a sentence or two about each fund and we have

given you a hint in the few sentences that go with each

fund. Hope, you find this selection worthwhile.

the

VALUE

India’s Best Mutual Funds

In Pursuit of Simplicity

January 15-February 14, 2008 Mutual Fund Insight 41

1-year 69.9

2-year 55.8

3-year 55.3

5-year 63.8

Since launch 44.2

1-year 62.3

2-year 54.8

3-year 50.3

5-year 51.1

Since launch 48.1

1-year 70.3

2-year 58.3

3-year 56.5

5-year 62.9

Since launch 32.0

1-year 82.9

2-year 67.0

3-year 62.4

5-year —

Since launch 64.4

Fund Name

Fund Rating

Fund Manager

(Manager's Tenure) Performance Consistency Trailing Returns Style Box

Launch Date 2003 2004 2005 2006 2007 Period (%) Comments

Diversified equity funds are ideal for forming the core of every long-term investors’ portfolio. They

capture the gains made by a broad range of stocks while shielding their portfolios from the worst of

the volatility that the markets face periodically.

theVALUE


EQ

UIT

Y:

DIV

ER

SIF

IED

««««

««««

««««

«««««

Birla Sun Life EquityMahesh Patil

(3 years)

August 1998

Birla Sun Life Frontline EquityMahesh Patil

(3 years)

August 2002

DSPML Equity FundApoorva Shah

(2 years)

April 1997

DSPML T.I.G.E.R. RegSoumendra Nath Lahiri

(3 years)

May 2004

One of the better funds in the category, its

investments span across large- and mid-caps.

Its stock bets have often kept it ahead of the

curve. After being acquired by Birla Sun Life

in 2005, it has stayed on course.

Low volatility is a mark of this large-cap

oriented portfolio. It may have lagged its

peers in the mid-cap rally of 2003-2005, but it

proved its ability in 2006, when large caps

soared.

A judicious mix of large and quality mid-cap

stocks and a well-diversified portfolio make it

a decent choice for investors who wish to add

some aggression to their portfolios without

compromising on safety.

Don't be confused by the complex acronym of

TIGER (The Infrastructure Growth and

Economic Reforms). It has proved to be a

well diversified solid equity fund delivering

good reurns from a blended all-cap portfolio.

The left-most bar in a series

represents the fund’s performance in

the first quarter of a calendar year.

Similarly, subsequent bars represent

the fund’s performance in second,

third and last quarter of the calendar

year. All data as on December 31,

2007. Returns up to 1 year are

absolute and above 1 year are

annualised.

Top Quartile(Among top 25% in the category)

Third Quartile(Among bottom 25-50% in the category)

Bottom Quartile(Among bottom 25% in the category)

Second Quartile(Among top 50-75% in the category)

Growth Blend ValueValuation

Large Mid S

mall

Cap

italisation

29 7 18

1 14

7


Large Mid S

mall

Cap

italisation

22 3 18

11 10

11 1


Large Mid S

mall

Cap

italisation

42 9 15

18 4 4

3

Value 50 is a tightly-packed capsule of fund information.Here’s how to use the graph and numbers to help youchoose the right fund.

theVALUE



Large Mid S

mall

Cap

italisation

28 5 18

24 3 9

7

21

19


Large Mid S

mall

Cap

italisation

00 00 00

00 00 00

00 00 00

High Mid LowCredit Quality

High

Mid

Low

Interest R

ate Sen

sitivity

A nine-box matrix that displays both

the fund's investment approach and

size of companies in which it invests.

Vertically, the three squares indicate

size orientation of fund — from the

bottom, small-cap, mid-cap and

large-cap. Horizontally, the three

squares indicate, from left to right,

three stages on the value-to-growth

spectrum. Figures in the boxed

represent percentage of investments in

the respective matrix.

A graphical presentation of the

investment style of the fund. The

vertical axis conveys short, medium

and high maturity which are classified

by Value Research as being less than

one year, between one and three

years, and greater than three years,

respectively. Credit quality is presented

across the X-axis and is classified into

three groups-high, medium and low.

These credit quality ratings are based

on a relative scale in which the credit

quality of an individual fund is assigned

a score and the range of that score is

then divided into these three ranges.

BO

ND

FU

ND

ST

YL

E

EQ

UIT

YF

UN

D S

TY

LE

PE

RF

OR

MA

NC

E C

ON

SIS

TE

NC

Y

42 January 15-February 14, 2008 Mutual Fund Insight

1-year 47.4

2-year 46.5

3-year 44.7

5-year 52.8

Since launch 31.3

1-year 54.9

2-year 52.1

3-year 50.6

5-year 55.2

Since launch 25.9

1-year 53.6

2-year 44.5

3-year 50.3

5-year 57.8

Since launch 26.9

1-year 66.4

2-year 54.9

3-year 49.7

5-year 56.2

Since launch 32.6

1-year 66.6

2-year 54.7

3-year 52.9

5-year 56.7

Since launch 35.4

1-year 66.3

2-year 58.2

3-year 62.3

5-year 72.1

Since launch 38.3

1-year 69.7

2-year 53.3

3-year 56.2

5-year —

Since launch 58.6

1-year 61.3

2-year 51.7

3-year 49.2

5-year 59.5

Since launch 37.6

1-year 87.1

2-year 61.1

3-year 52.8

5-year —

Since launch 45.4

1-year 59.8

2-year 51.7

3-year 51.1

5-year 60.7

Since launch 32.9

Fund Name

Fund Rating

Fund Manager



What diversified funds do not try to capture is the extreme upper reach of the returns that stock

markets occasionally offer. Aggressive ones try to nimbly move from one hot area and company to

the next, always seeking to stay where ever the quickest growth is

theVALUE


««««

««««

««««

«««««

««««

««««

««««

««««

Franklin India BluechipK N Siva Subramanian

(15 years)

Anand Radhakrishnan

November 1993

Franklin India Prima PlusSukumar Rajah (14 years)

Anand Radhakrishnan

(Less than 1 year)

September 1994

HDFC EquityPrashant Jain

(5 years)

December 1994

HDFC Growth Srinivas Rao Ravuri

(2 years)

August 2000

Kotak 30Sanjib Guha,

Krishna Sanghvi

(Less than 1 year)

December 1998

Magnum ContraPankaj Gupta

(Less than 1 year)

July 1999

Sundaram BNP Paribas IndiaLeadershipSrividhya Rajesh

(3 years)

June 2004

Tata Pure EquityM Venugopal

(3 years)

May 1998

DBS Chola OpportunitiesR Rajagopal (2 years)

Bajrang Kumar Bafna

(Less than 1 year)

December 2003

DSPML OpportunitiesAnup Maheshwari

(2 years)

April 2000

The strategy is simple - while large-caps

generate stable returns, a small exposure to

mid- and small-cap stocks add the additional

punch. An experienced management team

gives the fund a lead over its peers.

Low volatility and a large-cap oriented

portfolio has worked very well for the fund.

The recent numbers are impressive thanks to

the large-cap led market rally.

Like some other large-cap dominated funds

on this list, it also prefers consistency over

flashy returns. It has the ability to deliver good

returns with a portfolio of about 30 stocks.

Don't expect a trail-blazing performance.

A contrarian view has helped the fund

generate breathtaking returns of late. It picks

stocks that are undervalued and out of favour.

Contra can add another investing style to your

portfolio.

Proven to be a high quality equity fund. With

a focus on industry leaders and emerging

leaders, it moves across all market caps. Its

recent returns make it an attractive offering.

Slowly and steadily emerging as one of the

better options for equity fund investors. Its

investment canvas is wide as it can invest in

mid- as well as large-cap stocks. The fund

does not hesitate to go against the herd.

Solid returns from diversified, but well timed,

large cap bets make it an attractive

opportunity fund. The fund rarely ventures into

obscure names.

At launch, this fund was positioned as an

aggressive equity fund. But it has effectively

been run like a standard diversified equity

fund. It looks for opportunities in industries

that are expected to do well.

««« Apt to be a core holding. Its resolve to stick to

its large-cap mandate, even when others

flocked to mid-caps, makes it one of the most

trustworthy funds. Began to show its old

vigour with the large-cap rally of last year.


Large Mid S

mall

Cap

italisation

53 12 21

7 2

«««« Managed by one of India’s finest equity fund

managers, it’s an optimum balance between

aggression and stability. Despite its recent

weak relative returns, its abilty to withstand a

sustained market decline makes it a keeper.


Large Mid S

mall

Cap

italisation

38 8 20

22 1

4


Large Mid S

mall

Cap

italisation

29 8 10

25 7 13

7


Large Mid S

mall

Cap

italisation

34 12 9

20 6 1

14


Large Mid S

mall

Cap

italisation

50 10 25

8 2


Large Mid S

mall

Cap

italisation

30 5 17

28 2 9

4


Large Mid S

mall

Cap

italisation

26 10 14

19 7 13

11


Large Mid S

mall

Cap

italisation

33 15 21

12 6 11

2


Large Mid S

mall

Cap

italisation

34 7 11

8 6 9

16 3


Large Mid S

mall

Cap

italisation

34 12 15

20 4 7

5

EQ

UIT

Y:

AG

GR

ES

SIV

E


1-year 60.4

2-year 50.8

3-year 50.5

5-year —

Since launch 55.6

1-year 111.4

2-year 73.9

3-year —

5-year —

Since launch 68.7

1-year 91.0

2-year 62.8

3-year 61.4

5-year —

Since launch 65.6

1-year 52.4

2-year 54.5

3-year 62.0

5-year 70.4

Since launch 19.4

1-year 64.9

2-year 57.2

3-year 61.4

5-year 64.4

Since launch 19.1

1-year 76.9

2-year 57.9

3-year 61.4

5-year 72.6

Since launch 37.0

1-year 56.6

2-year 51.1

3-year 51.9

5-year 60.7

Since launch 31.6

1-year 79.2

2-year 63.5

3-year 57.1

5-year 58.5

Since launch 54.9

1-year 63.1

2-year 61.9

3-year 61.8

5-year 71.4

Since launch 64.5

1-year 58.0

2-year 52.2

3-year 52.9

5-year 49.9

Since launch 18.4

Fund Name

Fund Rating

Fund Manager



theVALUE


EQ

UIT

Y:

SU

PP

OR

TIN

G

Not Rated

«««««

«««««

««««

«««««

««««

Not Rated

«««««

ING Domestic OpportunitiesManish Bhandari

(2 years)

August 2004

JM BasicAsit Bhandarkar

(2 years)

June 2005

Kotak OpportunitiesKrishna Sanghvi,

Anurag Jain

(Less than 1 year)

August 2004

Magnum GlobalRitesh Sheth,

Vivek Pandey

(Less than 1 year)

September 1994

Magnum Multiplier PlusJayesh Shroff

(2 years)

February 1993

Reliance GrowthSunil B. Singhania

(4 years)

October 1995

Reliance VisionAshwani Kumar

(4 years)

October 1995

Sundaram BNP Paribas SelectFocusSrividhya Rajesh

(6 years)

July 2002

Sundaram BNP Paribas SelectMidcapSatish Ramanathan

(Less than 1 year)

July 2002

DSPML Technology.comApoorva Shah

(2 years)

April 2000

The basic industry mandate of the fund made

it a blockbuster in 2007. But this fund is not

for the cautious investor, given its limited

mandate to invest in sectors which seem too

hot to handle now.

The fund has delivered stellar returns from a

widely diversified stock portfolio. Well timed

bets and bias towards quality show extremely

impeccable stock picking in its limited history.

This fund has been one of the greatest

beneficiaries of the mid-cap rally, which has

helped it stage a strong comeback. But be

ready to take a lot of risk here. Don't be

surprised if you get only small- and mid-caps.

In 2002, the fund overhauled the portfolio to

focus on mid-caps and has never looked back

since. With an ultra-concentrated growth-led

portfolio, it has been a top quartile performer

in each of the last three years.

An unconventional diversified equity fund, this

one can be accommodated in all long-term

portfolios. With a portfolio laden with small-

and mid-cap stocks, it has delivered superb

returns over the years.

The fund has been impressive in its short

history so far. Good stock selection has been

at work here. It does not mind taking

concentrated bets and has a large-cap

blended portfolio.

Coming from a disciplined fund house, it has

displayed the ability to think against the herd.

A well-diversified portfolio and top quartile

returns in the last four calendar years place it

in the league of hottest mid-cap funds.

The fund’s stretched definition of technology

has helped it stay ahead of the pack. Not a

bad choice for believers in the technology

sector, even though the sector is undergoing

an unfavourable period.

««««« The fund is not an opportunistic play but is

proving to be a good diversified equity fund.

Here we see decent returns with low risk

owning to its sectoral and stock spread.


Large Mid S

mall

Cap

italisation

41 9 13

11 6 4

13


Large Mid S

mall

Cap

italisation

4 4

29 4 6

39


Large Mid S

mall

Cap

italisation

25 7 22

26 5 4

3


Large Mid S

mall

Cap

italisation

10 6

35 8 23

16


Large Mid S

mall

Cap

italisation

29 1 13

26 8 5

5 1


Large Mid S

mall

Cap

italisation

20 4 8

15 2 8

11


Large Mid S

mall

Cap

italisation

46 16 24

8 4


Large Mid S

mall

Cap

italisation

24 19 23

26 4

2


Large Mid S

mall

Cap

italisation

4 1 10

32 8 23

18


Large Mid S

mall

Cap

italisation

10 1 6

37 12 2

28 1


Sector-specific funds are risky, no doubt, but some sectors periodically keep returning to the

markets' centrestage. Funds that invest smartly in these can capture the extreme returns that these

hot sectors frequently generate, as long as one is prepared for the volatility.

«««« By shuffling its portfolio between large- and

mid-caps, this fund has earned handsome

returns for its investors. Astute stock picking

is the hallmark of this fund. It does not

hesitate to try untested stocks.

1-year 42.7

2-year 33.4

3-year 51.2

5-year 48.2

Since launch 22.2

1-year 124.4

2-year 88.8

3-year 86.3

5-year —

Since launch 76.2

1-year 83.6

2-year 62.8

3-year 55.7

5-year —

Since launch 54.4

1-year 66.5

2-year 47.9

3-year 39.9

5-year —

Since launch 39.4

1-year 72.0

2-year 66.7

3-year 63.4

5-year —

Since launch 56.9

1-year 55.9

2-year 44.7

3-year 48.0

5-year 60.2

Since launch 36.2

1-year 39.4

2-year 36.8

3-year 48.4

5-year 60.9

Since launch 43.0

1-year 55.3

2-year 50.0

3-year 64.0

5-year 73.8

Since launch 24.3

1-year 80.8

2-year 61.0

3-year 55.8

5-year 58.9

Since launch 28.3

1-year 68.4

2-year 49.1

3-year 52.5

5-year 60.2

Since launch 31.7

Fund Name

Fund Rating

Fund Manager



Tax-saving funds are the ideal way for very small investors to invest in equity. The tax you save is

an attractive padding for the investment gains that you'll get and the mandated lock-in period

enforces one of the best things that an investor can have – a long-term perspective.

theVALUE


Not Rated

Not Rated

Not Rated

«««««

««««

««««

«««««

««««

ICICI Prudential FMCGPrashant Kothari

(3 years)

March 1999

Reliance Diversified PowerSectorSunil B. Singhania

(4 years)

April 2004

Reliance Media &EntertainmentSailesh Raj Bhan

(3 years)

September 2004

UTI Banking SectorGautami Desai

(3 years)

April 2004

UTI InfrastructureSanjay Ramdas

Dongre

(3 years)

April 2004

Birla Equity PlanSanjay Chawla

(Less than 1 year)

February 1999

HDFC TaxsaverVinay R. Kulkarni

(2 years)

March 1996

Magnum TaxgainSudhanshu Asthana,

Jayesh Shroff

(Less than 1 year)

March 1993

Principal Tax SavingsShyam Sunder Bhat

(Less than 1 year)

March 1996

Sundaram BNP ParibasTaxsaverSatish Ramanathan

(Less than 1 year)

November 1999

Smart stock picking from mid-sized FMCG

companies has translated into excellent

returns. Not only has it beaten the BSE

FMCG index over the last three years, but is

also miles ahead of its two peers.

The only media fund may be an excellent

choice for investors willing to bet on the

explosive growth of media and entertainment

stocks.

Invest in this fund if you want to take a

concentrated bet on some of the largest

banks of the country. The fund invests in a

small portfolio of about 15 stocks, with a

heavy presence in large-caps.

This fund derived advantage out of the

infrastructure boom to top the diversified

equity category in 2006. With the optimism

for the infrastructure theme still intact, expect

more from it.

Aggressive churning, swift moves, and timely

entry and exit into opportunistic sectors makes

this a rewarding tax-saving fund. A relatively

small asset size provides agility to exploit less

liquid small- and mid-cap opportunities.

The fund swiftly moved up the ratings ladder

from one to five stars, on the back of breath-

taking performance. It has benefited from the

mid-cap rally, and its first rank for three

consecutive years till 2006 is no flash in the pan.

This one is emerging as a compelling option

among the ELSS funds. The fund

aggressively invests in mid- and small-caps

but mitigates risk through a high degree of

diversification at the stock level.

The fund has consistently been above

average. It maintains a widely diversified large

cap portfolio. Justifies its place as a core

holding offering a tax break in an equity

portfolio.


Large Mid S

mall

Cap

italisation

18

51 8

22


Large Mid S

mall

Cap

italisation

22 7

50 3


Large Mid S

mall

Cap

italisation

29 27 20

7 12

2


Large Mid S

mall

Cap

italisation

36 12 11

24 5 5

5


Large Mid S

mall

Cap

italisation

14 8 19

14 4 14

26


Large Mid S

mall

Cap

italisation

33 6 14

21 3 6

4


Large Mid S

mall

Cap

italisation

13 7 12

14 7

37 4 2


Large Mid S

mall

Cap

italisation

28 6 16

16 5 6

15

EQ

UIT

Y:

TA

X-P

LA

NN

ING


Not Rated

«««««

The blockbuster of 2007 has been hugely

rewarding every since its launch. The bulging

asset base notwithstanding, the fund shows

no symptoms of slowing down.

This fund has proved its worth in all market

conditions and has everything that one looks

for in a good tax-planning fund. It has

excelled in both bull and bear markets and

deserves a position in all equity portfolios.


Large Mid S

mall

Cap

italisation

18 14 5

16 1 1

7


Large Mid S

mall

Cap

italisation

34 12 14

19 3 6

6

1-year 43.5

2-year 39.5

3-year 40.8

5-year 39.9

Since launch 14.1

1-year 51.3

2-year 41.7

3-year 38.1

5-year 41.7

Since launch 22.6

1-year 43.2

2-year 38.2

3-year 41.3

5-year 46.7

Since launch 24.8

1-year 51.8

2-year 40.7

3-year 41.5

5-year 42.0

Since launch 25.5

1-year 48.4

2-year 41.0

3-year 43.2

5-year 48.2

Since launch 22.9

1-year 55.4

2-year 44.8

3-year 40.1

5-year 42.9

Since launch 21.1

3-month 7.3

1-year 18.2

2-year 15.4

3-year 15.7

Since launch 14.4

3-month 13.0

1-year 25.8

2-year 16.6

3-year 14.2

Since launch 12.3

3-month 8.6

1-year 18.4

2-year 15.4

3-year 15.5

Since launch 13.4

Fund Name

Fund Rating

Fund Manager



MIPs are essentially debt funds which carry a small (10-15 per cent) equity that can add a dash of

extra returns. While all MIPs obviously have monthly dividend plans, the category is misnamed.

MIPs are best treated as a variation of balanced funds that is meant for more conservative investors.

theVALUE


««««

«««««

««««

«««««

««««

««««

«««««

«««««

Canara Robeco Balance IIUmesh Kamath

(2 years)

January 1993

DSPML BalancedApoorva Shah

(2 years)

May 1999

HDFC PrudencePrashant Jain

(14 years)

January 1994

Kotak BalanceRitesh Jain (3 years)

Sanjib Guha,

Krishna Sanghvi

November 1999

Magnum BalancedRitesh Sheth

(Less than 1 year)

October 1995

Tata BalancedM Venugopal

(3 years)

October 1995

HDFC MIP Long-termPrashant Jain (4 years)

Shobit Mehrotra

(Less than 1 year)

December 2003

Principal MIP PlusPankaj Tibrewal

(Less than 1 year)

December 2003

UTI MIS-Advantage PlanAmandeep Singh Chopra

(4 years)

December 2003

HDFC Prudence's superb returns would do

even an equity fund proud. Traditionally a

large-cap dominated fund, a shift of focus

towards mid- and small-caps since late last

year has worked very well.

A diversified equity portfolio, coupled with

quality debt investments, has made sure that

this fund outperforms the category across

time periods. The fund derives strength from

its ability to change with time.

The balanced fund which gives the feel of an

equity fund. Suited for investors seeking

aggressive growth from a hybrid portfolio.

A less aggressive offering. It has managed to

fall less than the category average during

trying times, and, consequently, has not

strayed too far from the average returns

during the good times.

A high equity exposure led by mid- and small-

caps, active duration management and

exposure to lower rated paper has resulted in

above average volatility. High returns

compensates its high risk strategy.

This small sized MIP has proved its worth

with a consistently high return in its category.

Its selectivity, with an average 20% equity

allocation, is key to its performance.

Substantial equity exposure has meant higher

volatility. Investment in lower rated paper

suggests an aggressive stance. But all risk

has been worth the returns it generates. Low

expense ratio is an advantage.

Steady above average return derived from a

large-cap portfolio and high yielding fixed

income instruments inspires confidence.

Small asset base is another plus.


High M

id Low

Interest Rate S

ensitivity


High M

id Low

Interest Rate S

ensitivity


High M

id Low

Interest Rate S

ensitivity


Large Mid S

mall

Cap

italisation

43 20 10

8 1

HY

BR

ID:

MIP


The ultimate goal of a hands-off investors is to find an ideal balanced fund – just one fund can be

enough. The best equity-oriented hybrid funds offer a large percentage invested in a conservative

stock portfolio and rest in fixed-income securities that protect gains when markets turn hostile.

EQ

UIT

Y:

EQ

UIT

Y-O

RIE

NT

ED

««««A diversified equity portfolio, quality debt,

relatively low expense ratio and below

average standard deviation makes this fund

one of the better balanced funds around. A

good choice for conservative investors.


Large Mid S

mall

Cap

italisation

16 2 14

15 9 7

9


Large Mid S

mall

Cap

italisation

8 4 6

23 7 13

15


Large Mid S

mall

Cap

italisation

24 2 13

13 5 3

8


Large Mid S

mall

Cap

italisation

24 4 11

21 2

14


Large Mid S

mall

Cap

italisation

25 9 9

12 1 8

10

3-month 4.4

1-year 12.6

2-year 9.0

3-year 7.4

Since launch 10.6

3-month 2.2

1-year 8.7

2-year 7.5

3-year 6.7

Since launch 7.5

3-month 2.1

1-year 8.5

2-year 7.8

3-year 7.2

Since launch 7.2

1-month 0.7

3-month 2.2

6-month 5.0

1-year 10.1

Since launch 6.6

1-month 0.7

3-month 2.1

6-month 5.0

1-year 9.7

Since launch 6.9

1-month 0.7

3-month 2.0

6-month 3.7

1-year 7.8

Since launch 6.3

1-month 0.7

3-month 2.0

6-month 3.8

1-year 8.0

Since launch 6.5

Fund Name

Fund Rating

Fund Manager



theVALUE


«««««

«««««

«««««

««««

««««

Birla Income PlusManeesh Dangi

(Less than 1 year)

October 1995

ICICI Pru Flexible IncomeRahul Goswami

(3 years)

September 2002

Kotak Flexi DebtRitesh Jain (3 years)

Deepak Agrawal

(Less than 1 year)

November 2004

Birla Sun Life Short-termManeesh Dangi,

Satyabrata Mohanty

(Less than 1 year)

April 2002

Tata Short-term BondMurthy Nagarajan

(3 years)

August 2002

Canara Robeco LiquidRetailAmruth K Rao

(6 years)

January 2002

LICMF LiquidAshish Kumar

(4 years)

March 2002

Among the oldest open-ended income funds,

it is proving its mettle in recent times. With

returns almost twice as much as the average

fund in the category (2007), the fund is a

compelling income avenue.

This fund thrived on turbulence to deliver top-

notch returns in the last two calendar years. A

conservative stance on interest rates

(average maturity of less than one year)

helped it sail through.

Decent return and modest expense coupled

with a five-star rating make it a good choice.

The high-credit quality and low maturity profile

ensures that capital remains protected.

It's tough to beat the economy of Canliquid

Retail. The fund had been one of the least

expensive funds in the category - it charges

just 0.22 per cent as against the category

average expense ratio of 0.55 per cent.

The fund takes risky bets frequently as the

average maturity of holdings exceeded 200

days on many occasions. But the fund has

been able to convert all those bets into above

average returns for its investors.


High M

id Low

Interest Rate S

ensitivity


High M

id Low

Interest Rate S

ensitivity


High M

id Low

Interest Rate S

ensitivity


High M

id Low

Interest Rate S

ensitivity


High M

id Low

Interest Rate S

ensitivity

Short-term debt funds are designed to enable investors to park funds for periods from three months

to an year. They invest in securities that match this period and protect investors from the vagaries

of fluctuating interest rates.

Ultra short-term funds are best used as an alternative to leaving short-term money in a current or

even a savings account in a bank. While these funds' portfolios carry negligible risk, the low returns

mean that they are worth the trouble only if your investment is at least Rs 10 lakh or so. D

EB

T:

ULT

RA

SH

OR

T-T

ER

M

DE

BT:

SH

OR

T-T

ER

M


Bond funds offer a straightforward proposition – stable returns that continue more or less unchanged

through all kind of upheavals. Of course, the interest rate declines of the last two years have meant

some extraordinary returns, but the future holds a more conservative promise.

DE

BT:

ME

DIU

M-T

ER

M

«««««

«««««

Low risk, modest return, a high quality

portfolio and flexibilty to move in the

rewarding bond segment makes it an

attractive choice.

Low risk, high return and the lowest expense

ratio- it doesn't get any better than this for a

short-term debt fund. This fund has achieved

that with a portfolio characterized by high

credit quality and a low maturity profile.


High M

id Low

Interest Rate S

ensitivity


High M

id Low

Interest Rate S

ensitivity

The information contained in this news letter has been obtained from sources considered to be authentic and reliable. However, ICICI Securities Limited (I-Sec) is not responsible for any error or inaccuracy or for any losses suffered on account of information contained in this news letter. For Risk factors and other details, prospective investors are advised to refer to the full offer document of the respective schemes of the Mutual funds. The data and information provided in this news letter is not advice, professional or otherwise, and should not be relied upon as such. Neither the information, nor any opinion contained in this news letter constitutes a solicitation or offer by I-Sec to buy or sell any mutual fund units or provide any investment advice or service. I-Sec or their employees have or may have an outstanding buy or sell position or holding in the mutual fund units mentioned herein. The investments discussed in the news letter may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advisors as they believe necessary. The display, description or references to any products, services, publications or links in this news letter shall not constitute an endorsement by I-Sec.

Disclaimer

Documents

Mutudl Fund Insight