GEMGAZE

December 2015 

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 2014 GEMGAZE have performed reasonably well through thick and thin and figure prominently in the 2015 GEMGAZE too. 

ICICI Prudential Long-term Gilt Fund Gem

Launched in August 1999, ICICI Prudential Gilt Investment Fund sports an AUM of Rs 1738 crore. Being a gilt fund, the credit quality of the portfolio is very high with Government of India securities constituting 97.64% of the total assets. There are thirteen holdings in all with an average maturity of 23.88 years and yield to maturity of 7.95%. The fund earned a return of 5.81% in the past one year as against the category average of 6.55%. The expense ratio is 0.95%. 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. 172 crore with 17 holdings. Central Government and State Government loans and securities constitute 94.48% of the total assets and 2.88% is invested in AAA rated bonds. The credit quality of the fund is reasonably high. The interest rate sensitivity of the fund is high with the average maturity at 20.56 years and yield to maturity of 8.03%. Its return in the past one year is 5.64%, almost on par with the category average of 7.27%. 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. 15,898 crore, making it the largest fund in the income category. 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 7.74% as against the category average of 7.27%. In the last five years, Birla Dynamic Bond Fund has generated compounded annual returns of 9.88%, 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. Consistency of returns shows in the fund trailing its benchmark in only one of the last ten years (2013) and beating its category in all ten years. It has managed good returns even in difficult periods for bond markets such as 2005 and 2009. The NAV took a knock of 3.7% in the bond shock of May-August 2013 but has since more than made up for it with high one-year returns. Not overly focused on G-secs, the fund does use a mix of G-secs and corporate bonds in its portfolio to deliver returns. The number of holdings in the fund’s portfolio is 55 with an average yield to maturity at 8.15%. The expense ratio is 1.36%. 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 919 crore. The one-year return of the fund is 5.37% as against the category average of 6.55%. The fund is benchmarked against the I-Sec Li-Bex. The fund has eleven holdings with the yield to maturity of 7.79%. The expense ratio of the fund is 1.42%. Prasad Dhonde and Kaustubh Gupta have been the fund managers since October 2012 and June 2014 respectively. 

Birla Sunlife Floating Rate Short term Fund Gem

This relatively young fund, launched in October 2005, boasts of a massive AUM of Rs 3628 crore.  In the past one year, this liquid fund has returned 8.44% as against the category average of 8.1%. The number of holdings in the fund’s portfolio is 46 with an average yield to maturity at 7.55%. The expense ratio is a mere 0.12%. The fund is benchmarked against the CRISIL Liquid Index. Sunaina da Cunha and Kaustubh Gupta are the fund managers.