From topping the charts in 1999, it hit rock bottom in the next three years. Going by its five-year annualised return of 26 per cent (June 30, 2009), it still has a lot going for it.
Despite fund manager Ritesh Sheth taming down the aggression since he took over in July 2007, the fund still has the mark of a risk taker. He churns his equity portfolio very frequently.
A typical characteristic of this fund is that it falls harder during market downturns. That would explain its fall in 2008 by 44.66 per cent (category average: -41 per cent).
Sheth maintains a broad portfolio that has averaged at 47 stocks, where no single stock allocation has crossed 5 per cent, with the exception of Reliance Industries.
Despite a mandate allowing it to go headlong into equity, the fund has never done so. It has limited its highest exposure to around 79 per cent, which is quite high, considering that it is a balanced fund. On the debt side, the fund maintains a high-quality portfolio, with a preference for Certificates of Deposit (CD), Commercial Paper (CP) and non-convertible debentures.
CANARA ROBECO BALANCE
It's tough to comment on a fund that has been in existence since 1993, evolved from a merger of three schemes and been subject to frequent fund manager changes. But, its higher-than-average 5-year return of 24 per cent (June 30, 2009) makes it worthwhile. In the three-year period of 2004-06, the fund was in the top quartile, but not in the two years that followed.
Nimesh Chandan's taking over the fund in July 2008 brought in considerable moderation. Sector allocations were more reasonable, the highest being 17 per cent. A change from its earlier days, when one sector could have an allocation of 41 per cent and individual stock holdings could cross 10 per cent.
The equity allocation, which has been known to touch 80 per cent, though its limit is 75 per cent, is now maintained at around 67 per cent.
Chandan refrains from going much into cash, the exception being April and May 2009. The fund gained 57 per cent in the current rally (March 9-June 30), while its peers returned an average of 49 per cent.
On the debt side, historically the fund tended to dabble in low-quality paper and also gravitated towards the higher end of the maturity spectrum. But ever since the start of this year, the fund manager has toned down the maturity and has stuck to highly rated paper. Chandan believes in a buy-and-hold strategy, even on the debt side of the portfolio.
Going by the long and complicated history, it's wise to consider its performance since the current fund manager took over. Looking at the stability he has brought in, and the one-year return of 18 per cent (category average: 8 per cent as on July 6), it's worth a consideration.
DSPBR BALANCED
The fund sticks to its equity mandate of 65-75 per cent. Though there have been instances when it has dipped below 65 per cent, it has never crossed 75 per cent. It upholds its large cap bias, but is not averse to smaller stocks. In 2007, it decreased its large-cap allocation between January (52 per cent) and September (36 per cent). In the recent market run up, too, it reduced its large cap exposure between February (64.44 per cent) and May (46.41 per cent).
Apoorva Shah took over in June 2006 and maintains a well-diversified portfolio that has averaged at 75 stocks in recent times, though in May 2009, it touched 83. On the debt side, the fund tries to keep risk to its minimum by sticking to high-quality and low-maturity paper. Unlike its peers, it has refrained from extensively investing in debentures and commercial paper.
You won't find this fund collapsing like a pack of cards when the market crashes, but neither will it deliver trailblazing returns when it goes up.
