GEMGAZE

December 2014

Average investors need a balanced investment portfolio in order to earn reasonable returns at an acceptable level of risk. This is achieved by investing money in debt funds besides diversified equity funds.

All the GEMs from the 2013 GEMGAZE have performed reasonably well through thick and thin and figure prominently in the 2014 GEMGAZE too. 

ICICI Prudential Long-term Gilt Fund Gem

Launched in August 1999, ICICI Prudential Gilt Investment Fund sports an AUM of Rs 809 crore. Being a gilt fund, the credit quality of the portfolio is very high with Government of India securities constituting 96.84% of the total assets. There are six holdings in all with an average maturity of 16.25 years and yield to maturity of 8.1%. The fund earned a return of 16.94% in the past one year as against the category average of 15.89%. The expense ratio is 1.06%. The fund is benchmarked against the I-SEC Li-BEX index. The fund is managed by Mr. Rahul Goswami and Mr. Anuj Tagra.

Canara Robeco Income Fund Gem

Canara Robeco Income Fund was launched nearly a decade ago in 2002. The current AUM of the fund is Rs. 166 crore with 11 holdings. Central Government loan constitutes 61% of the total assets, bonds 9%, debentures 19%, and commercial papers 11%. The credit quality of the fund is reasonably high. The interest rate sensitivity of the fund is high with the average maturity at 10.7 years and yield to maturity of 8.46%. Its return in the past one year is 13.79%, almost on par with the category average of 13.1%. The expense ratio of the fund is high at 1.9%. The fund is benchmarked against the CRISIL Composite Bond Index. The fund is managed by Mr. Avnish Jain since June 2014.

Birla Sunlife Dynamic Bond Fund Gem

Birla Sunlife Dynamic Bond Fund manages assets worth Rs. 10,025 crore. This fund is a steady top quartile performer with low volatility. It has delivered returns across interest-rate cycles and is among the top few in its category. The one-year return of the fund is 14.23% as against the category average of 13.10%. In the last five years, Birla Dynamic Bond Fund has generated compounded annual returns of 9.19%, putting it among the top couple of funds in its category and ahead of peers such as SBI Dynamic Bond, Kotak Flexi Debt, and BNP Paribas Flexi Debt. The number of holdings in the fund’s portfolio is 52 with an average yield to maturity at 8.39%. The expense ratio is 1.21%. Maneesh Dangi is the fund manager since September 2007.

 

Birla Sunlife Government Securities Long term Fund Gem 

Launched in October 1999, the fund has an AUM of Rs 415 crore. The one-year return of the fund is 16.76% as against the category average of 15.89%. The fund is benchmarked against the I-Sec Li-Bex. The fund has eight holdings with the yield to maturity of 8.35%. The expense ratio of the fund is 1.72%. Prasad Dhonde and Kaustubh Gupta have been the fund managers since October 2012. 

Birla Sunlife Floating Rate Short term Fund Gem

This relatively young fund, launched in October 2005, boasts of a massive AUM of Rs 2991 crore.  In the past one year, this liquid fund has returned 9.11% as against the category average of 8.78%. The number of holdings in the fund’s portfolio is 33 with an average yield to maturity at 8.62%. The expense ratio is a mere 0.3%. The fund is benchmarked against the CRISIL Liquid Index. Sunaina da Cunha and Kaustubh Gupta are the fund managers.