While, the fund has so far maintained an average 15 per cent in cash, the rest of the portfolio is spread across automobiles and ancillaries, industrial machinery and diversified companies. Launched when the markets were caught in the technology frenzy, the fund took positions in software stocks when the markets were near their peak. With the markets going into an immediate tailspin, the net asset value stood significantly eroded even with one-third of its allocation to infotech. The fund lost 35 per cent during the ICE meltdown ending May 2000. Though the fund has lost a fourth of its par value till date, the fund is too young to be judged.
Equity investments are rewarding in the long term for sure.
Short-term dynamics apart, the quality and the diversified portfolio of this fund should yield reasonable returns in the long run. All Rights Reserved.