This balanced fund is a good choice to beat volatility in the markets, as it provides a good downside protection for low risk investors. The fund manager takes very few risks by investing in companies that have strong management, visible in its top 5 holdings. Further, the asset allocation is managed on a static basis, with a 65-35 allocation between equity and debt.
The fund is well diversified with a portfolio of about 50 stocks across market capitalisation, with a tilt towards large-cap allocation. On debt, the focus is to generate regular coupon income, along with some capital appreciation through active duration management. The fund’s performance scores for its ability to navigate the bear phase of the stock markets, which at times pales its performance during the bull runs, as is the case currently. A long history and consistency of the fund management team are other factors that are favourable for this superior performance.
Launch Date: October 12, 1999
Fund Managers: Sachin Padwal-Desai, Umesh Sharma and Lakshmikanth Reddy
Benchmark: Crisil Balanced Fund Aggressive Index
Expense ratio: 2.59