GEMGAZE

February 2017

All the GEMs from the 2016 GEMGAZE have performed reasonably well through thick and thin and figure prominently in the 2017 GEMGAZE too. 

FT India Life Stage Fund of Funds Gem

Franklin Templeton AMC offers five plans based on life stages that will suit your age profile – FT India Life Stage FoF 20s, FT India Life Stage FoF 30s, FT India Life Stage FoF 40s, FT India Life Stage FoF 50s Plus, and FT India Life Stage FoF 50s Floating Rate. The first four plans were launched in November 2003 and the last plan was launched in July 2004. All these are plans of a single fund that has assets of around Rs 78 crore. The AUM of each plan is Rs 13 crore, Rs 7 crore, Rs 13 crore, Rs11  crore, and Rs 34 crore respectively. The top three sectors in the portfolio are finance, energy, and automobile. The allocation to equity tapers from 80% in the first plan to a measly 20% in the last plan. The allocation is 79.92%, 54.94%, 34.73%, 19.81%, and 19.75% in the five plans respectively. The one-year returns of the plans are 22.36%, 18.14%, 14.96%, 12.58%, and 11.22% respectively, while the expense ratio for the plans is 1.4%, 1.47%, 1.55%, 1.57%, and 0.79% respectively.

ICICI Prudential Advisor Series – Dynamic Accrual Plan Gem

ICICI Prudential Advisor Series – Dynamic Accrual Plan was launched in December 2003 as ICICI Prudential Advisor–Very Cautious as part of a five-plan Fund of Funds series: ICICI Prudential Advisor–Very Aggressive, ICICI Prudential Advisor–Aggressive (ICICI Prudential Advisor Series – Long Term Savings Plan w.e.f. December 6, 2013), ICICI Prudential Advisor–Moderate, ICICI Prudential Advisor–Cautious, and ICICI Prudential Advisor–Very Cautious (ICICI Prudential Advisor Series – Dynamic Accrual Plan w.e.f. June 17, 2015). The AUM of the Dynamic Accrual Plan is Rs 24 crores. The scheme aims to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through investments made primarily in the schemes of Prudential ICICI Mutual Fund having asset allocation to money market and debt securities. The top three holdings are ICICI Prudential Gilt Investment PF, ICICI Prudential Savings Fund, and ICICI Prudential Corporate Bond Fund. The one-year return of the plan is 11.07% as against the category average of 11.27%. The fund has been managed by Mr. Mrinal Singh since October 2010.

Birla Sunlife Active Debt Multi-manager FoF Scheme Gem

Birla Sunlife Active Debt Multi-manager FoF Scheme, which sports an AUM of Rs.85 crores, is an open-ended fund of funds launched in December 2006. The Scheme seeks to generate returns from a portfolio of pure debt-oriented funds accessed through the diverse investment styles of underlying schemes selected in accordance with the Birla Sunlife AMC process. The top five holdings are SBI Magnum Gilt Fund LT Fund, Birla Sunlife Medium Term Fund, IDFC Dynamic Bond Fund, Birla Sunlife GSF Long-term Fund, and ICICI Prudential Gilt Investment PF Fund. The one-year return of the fund is 13.94% as against the category average of 11.27%. The expense ratio of the fund is 1.11%. The fund has been managed by Mr. Shravan Kumar Sreenivasula since December 2014.

FT India Dynamic PE Ratio Fund of Funds Gem

FT India Dynamic PE Ratio Fund of Funds’ investment strategy is unique. Its portfolio is invested in a mix of equity and debt. But unlike the usual balanced fund, it changes this mix based on market levels (the price-earnings multiple of Nifty) at the end of each month. If the Nifty PE is at a rock-bottom 12 times or less, 90-100% of the portfolio goes into shares, with very little in debt. If the PE crosses the danger zone above 28 times, the portfolio is fully switched into debt. At PE bands that fall in between, the equity portion can vary from 30-70%. This fund does not invest directly in stocks or bonds, but redirects your money into two other well-managed funds – Franklin India Bluechip Fund and Franklin India Short-term Income Plan, the former invested in large-cap stocks and the latter in long term gilts and bonds. At present, the fund holds 50.52% in Franklin Bluechip Fund and 49.48% in Franklin India Short-term Income Plan. Launched in October 2003, the AUM of the fund is an impressive Rs 762 crore. This predominantly large cap fund has an allocation to equity of 50.52% at present. The one-year return of the fund is 16.21% as against the category average of 19.01%. The expense ratio is at 1.7%. The fund has been managed by Mr. Anand Radhakrishnan since Feb 2011.