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FUNDSUPERMART.COM MUTUAL FUND RESEARCH RECOMMENDATIONS

At Fundsupermart.com, we have an in-house research team to provide independent research and detailed analyses of the market movements, and to help you make the smartest next move.

We strive to analyze funds with as long a comparable history as possible and only within their peer group.

For A Look At Our Methodology, Click here..

For A More Detailed Description Of Why We Recommend Any Particular Fund, Please Click On The Recommended Fund's Name Below:

 
Equity
Debt
Hybrid
Recommended Funds  Fund Class
Performance (Annualised)
1 year 2 years 3 years 5 years
Buy  
IDFC GOVERNMENT SECURITIES FUND INVESTMENT PLAN PLAN B- GROWTH  Gilt - Long Term  3.96 9.62 10.17 7.07
BSL GOVERNMENT SECURITIES FUND LONG TERM PLAN - GROWTH  Gilt - Long Term  0.12 6.94 7.48 7.49
SBI MAGNUM GILT FUND SHORT TERM PLAN- GROWTH  Gilt - Short Term  8.53 9.02 9.04 6.84
UTI SHORT TERM INCOME FUND- INSTITUTIONAL PLAN- GROWTH  Short Term  7.93 9.9 10.37 7.92
RELIANCE REGULAR SAVINGS FUND DEBT OPTION- GROWTH  Short Term  7.95 8.99 8.98 7.47
TEMPLETON INDIA SHORT TERM INCOME PLAN- GROWTH  Short Term  8.5 9.59 9.57 8.89
SUNDARAM SELECT DEBT SHORT TERM ASSET PLAN- GROWTH  Short Term  8.74 10.1 11.29 8.56
PINEBRIDGE INDIA SHORT TERM FUND STANDARD PLAN- GROWTH  Short Term  6.68 8.26 8.84 7.79
BARODA PIONEER PUBLIC SECTOR UNDERTAKING (PSU) BOND FUND- GROWTH  Income  6.16 8.58 8.53 -
CANARA ROBECO INCOME- GROWTH  Income  4.07 7.38 7.84 6.54
TEMPLETON INDIA INCOME BUILDER ACCOUNT PLAN A- GROWTH  Income  6.31 9.25 23.15 13.32
UTI DYNAMIC BOND FUND- GROWTH  Dynamic Bond  7.49 9.36 9.53 -
DSP BLACKROCK STRATEGIC BOND FUND- INSTITUTIONAL PLAN- GROWTH  Dynamic Bond  5.51 8.16 8.64 7.2
BSL DYNAMIC BOND FUND- GROWTH  Dynamic Bond  6.2 8.54 9.1 7.84
Please note that while we hope that these recommendations would be useful for investors, you are also advised to look at the fund's scheme information document/ statement of additional information and do your own further research before making your investment decisions.

IDFC GOVERNMENT SECURITIES FUND INVESTMENT PLAN PLAN B- GROWTH
Investment Strategy: The fund's mandate is to invest into Government Securities which are aimed at generating optimal returns with high liquidity. Over the past year, the fund has been having a major exposure into G-Secs except during February 2013 and June 2013, when the fund had taken a huge allocation into Cash and Cash Equivalents to the tune of 71% and 57% respectively. The Average Maturity of the portfolio as on November 2013 stands at 12.4 years as against 14.51 years in December 2012.

Performance: The best performing Gilt Fund according to our model, finds an entry into our Recommended Funds list for the first time. The fund has generated a CAGR of 8.42% and 10.10% over a 1-year and 3-year time period, while the benchmark has returned 5.33% and 7.47 % respectively.

Fund Manager's Comments: Seasonal triggers on rates have mattered more for bond fund performance over the past few years rather than one-directional movement on rates. As long as such seasonal triggers are captured effectively, it may not matter whether underlying RBI policy rates are static or marginally higher. More specifically in the current context, we have used the bond rally over the first half of January to cut duration in our bond and gilt funds. While lack of near term bond supply may keep yields in a range for now, the outlook may appear less favorable once new supply starts from April. Thus unless new triggers emerge (for instance if inflation falls more than expected in near term), we are likely to rotate into front end assets over the next months. This part of the curve is likely to do better from April on seasonal triggers of falling credit to deposit ratio and possibly better relative liquidity. Longer end rates may give clearer cues once market starts absorbing the new supply calendar and we get a better grip on how complementary government policies will be on the other side of the elections. By that time it will also get clearer whether this is indeed a Brave New World of shrinking incremental global liquidity or we relapse into potentially endless balance sheet expansion by global central banks.

Investors should consider bond funds from an asset allocation perspective of 18 months to 2 years and preferably not use them tactically to capture short term market moves. It should also be remembered that most excess returns over past 4 years have been captured not when rates were in a secular bull run but by simply playing seasonal triggers. The same format is likely to persist in the time ahead as well even though the triggers affecting bond performance may change again.

The fund is positioned in the segments of the yield curve where returns are expected to be optimum. Currently, we are 70% invested in Gilt and 30% in Cash.

Inception Date: March 9,2002

Fund Manager: Suyash Choudhary

Asset Size: INR 493 crore (AUM as on November 2013)

Exit Load:Nil

Benchmark: I-Sec Composite Index 
View Fact Sheet Buy Fund View Fund Card

BSL GOVERNMENT SECURITIES FUND LONG TERM PLAN - GROWTH
BSL GOVERNMENT SECURITIES FUND LONG TERM PLAN
Investment Strategy: The fund will invest into G-Secs or State Government securities and has the flexibility of having a duration of up to seven years. Over the past year, the fund's average allocation into G-Secs and Cash and Cash Equivalents stood at 83% and 14% respectively. There was only 1 month that is January 2013 that the fund had taken an exposure into Treasury Bills to the tune of 40% .The Modified Duration of the Fund has come down from 8.71 years in December 2012 to 6.92 years in November 2013.

Performance: The fund continues to be a good performer in the long term gilt space in this review as well. Over a time period of 3 years and 5 years the fund has generated a CAGR of 7.20% and 10.60% respectively, while the benchmark has delivered 7.05% and 6.12%.

Inception Date: October 28, 1999

Fund Manager: Prasad Dhonde

Asset Size: INR 509 crore (AUM as on November 2013)

Exit Load: 1% within 365 days, Nil after 365 days

Benchmark: I-Sec Li-BEX 
View Fact Sheet Buy Fund View Fund Card

SBI MAGNUM GILT FUND SHORT TERM PLAN- GROWTH
Investment Strategy: The fund will invest into government securities issued by the Central Government and the State Governments. The fund also has the flexibility to invest into term/notice money market, repos and reverse repos to meet the liquidity requirements or on defensive considerations. An analysis of the portfolio shows that the fund has been decreasing the exposure into G-Secs from 88% in December 2012 to 28% in November 2013. On the other hand, the Cash and Cash Equivalents have seen an increase from 12% to 72% during the same period. As far as the Average Maturity of the Fund is concerned, it has seen a decrease from 2.98 years in December 2012 to 1.96 years in November 2013.

Performance: This is the best performing short-term Gilt fund on our platform. Over a time period of 3 years and 5 years, the fund has delivered a CAGR of 8.76% and 7.18% respectively vis-à-vis the benchmark CAGR of 7.90% and 7.35% respectively.

Inception Date: December 30, 2000

Fund Manager: Dinesh Ahuja

Asset Size: INR 86 crore (AUM as on November 2013)

Exit Load: 0.15% within 15 days

Benchmark: I-Sec Si-BEX
 
View Fact Sheet Buy Fund View Fund Card

UTI SHORT TERM INCOME FUND- INSTITUTIONAL PLAN- GROWTH
Investment Strategy: The fund will invest into money market securities and high-quality Debt securities focusing on low risk and high liquidity. The Average Maturity of the fund can go up to 4 years. During the last year, the fund has been allocating more than 50% of the surplus into Corporate Debt while the average exposure into Certificates of Deposit has been to the tune of 22%. The fund has also been maintaining an exposure into cash and cash equivalents which on an average during the last year stood at 13%. In the month of July, when there was a chaos in the debt market, the fund's allocation into Cash and Cash Equivalents stood at 40%. Similar to its peers, this fund has also reduced its Average Maturity from 3.87 years in December 2012 to 2.7 years in November 2013. As far as the credit quality of the portfolio is concerned, during the last year the fund had more than 70% of the portfolio allocated into AAA, A1+ and AA+.

Performance: The best performing short time fund according to our model, finds an entry into our Recommended Funds list for the first time. The fund has delivered a CAGR of 9.42% & 10.29% over a 1-year and 3-year time period as against the benchmark which has delivered 8.16% and 8.25% respectively.

Fund Manager's Comments: UTI Short Term Income Fund is primarily an accrual oriented income fund with the flexibility to maintain average maturity up to 4 years, to take advantage of the movement in the shorter end of the yield curve. Currently the fund aims to maintain, an average maturity between 1.5 to 3.0 years to take care of interim volatility in the bond markets. We continue to retain our conviction on this product, which has been vindicated by its good performance in the last couple of years. UTI Short Term Income Fund is well
positioned in the 1-2 year segment and can be a good bet under prevailing conditions as we expect to see the short term yields coming off based on positive factors leading to steepening of the yield curve going forward. Hence, investors can look to increase exposure to UTI Short Term Income Fund with a 6 to 12 months horizon.

Inception Date: June 23, 2003

Fund Manager: Sudhir Agarwal

Asset Size: INR 2,568 crore (AUM as on November 2013)

Exit Load: 0.75% on or before 90 Days, 0.50% on or before 180 Days, Nil after 180 Days

Benchmark: Crisil Short Term Bond Fund Index  
View Fact Sheet Buy Fund View Fund Card

RELIANCE REGULAR SAVINGS FUND DEBT OPTION- GROWTH
Investment Strategy: The fund's mandate is to invest into fixed income securities like Central Government securities (G-Secs), Treasury Bills (T-Bills), Corporate Bonds, and CBLOs. The fund will limit the exposure into Government Securities to reduce volatility and the exposure into this instrument will not exceed 50% of the corpus of the fund. An analysis of the portfolio over the past year shows that the fund is skewed completely towards the Corporate Debt space with an average allocation of 89%. On the other hand, the fund which had a miniscule allocation of around 3% into Pass-Through Certificates (PTC) & Securitized Debt in December 2012 has seen the exposure into this instrument turn nil from May 2013. The Average Maturity of the portfolio which stood at 1.51 years in December 2012 increased to 1.99 years in November 2013. As far as the credit quality of the portfolio is concerned, we can see that over the last year, the average allocation into high-quality instruments was to the tune of 45% while the rest were concentrated in instruments which were rated AA and below.

Performance: In the Regular Savings Category, the fund is the best performer on our platform clearing all the filters in the model. The fund has generated a CAGR of 8.51% and 7.62% vis-à-vis the benchmark's CAGR of 6.60% and 6.77% over a time period of 3 years and 5 years.

Fund Manager's Comments: The fund seeks to generate accrual returns through yield enhancing credit exposures along with capital appreciation due to the moderate duration in the portfolio. In line with our investment philosophy of not carrying high duration in our credit oriented fund we are maintaining duration of around 1.75 years with focus on higher accruals.
The fund currently has reasonable exposure to liquid corporate bonds especially in the PSU segment so as to explore opportunities on the credit curve over a period of time. Subject to adequate credit comfort, we will incrementally shift from shorter maturities AAA PSU assets to 2-3 years private assets yielding higher rates in the current environment and enhance both the gross yield as well as duration of the fund. Curve steepening due to further reversal of measures from RBI will add to overall returns into the fund.
Investors who are comfortable with good quality private sector credit exposure and whose time horizon is more than a year can consider investing in the fund which will run duration of up to 2 years, through high accrual assets.
Inception Date: June 9, 2005

Fund Manager: Prashant Pimple

Asset Size: INR 3,839 crore (AUM as on November 2013)

Exit Load: 1% on or before 1 year, Nil after 1 year

Benchmark: Crisil Composite Bond Fund Index 
View Fact Sheet Buy Fund View Fund Card

TEMPLETON INDIA SHORT TERM INCOME PLAN- GROWTH
Investment Strategy: The fund's mandate is to focus on investment opportunities at the short-end of the curve. The fund is always known to have a major tilt towards the Corporate Debt side. During the last year, the average allocation into this instrument was to the tune of 79%. On the other hand, during the same time period, the average allocation into Certificates of Deposit and Commercial Paper was 8% and 6% respectively. As far as the allocation into Pass-Through Certificates (PTCs) and Securitized Debt is concerned, the fund had 5% exposure to this instrument in December 2012 which increased to 11% in June 2013. It was again reduced to 1% in the next month and continues to stay at that level in November 2013 as well. The Average Maturity of the fund has seen a decrease from 2.46 years in December 2012 to 1.89 years in November 2013. The fund does a compromise when it comes to the quality of instruments as can be derived from the fact that on an average, around 50% of the portfolio is normally allocated into instruments which are rated below AA.

Performance: This fund is known to stick to its mandate of delivering high returns on the back of the huge risks that it actually takes in its portfolio. Hence, we have included this fund in our Recommended Funds list as a fund which is suitable only to those investors who are not risk-averse. The fund has generated a CAGR of 9.32% and 9.62% during the time period of 3 years and 5 years respectively. On the other hand, the benchmark has delivered a CAGR 8.25% and 7.79% respectively during the same time period.

Inception Date: January 31, 2002

Fund Managers: Umesh Sharma & Sachin Padwal-Desai

Asset Size: INR 7,498 crore (AUM as on November 2013)

Exit Load: 0.50% within 1 year, Nil after 1 year

Benchmark: Crisil Short Term Bond Fund Index 
View Fact Sheet Buy Fund View Fund Card

SUNDARAM SELECT DEBT SHORT TERM ASSET PLAN- GROWTH
Investment Strategy: As per the investment strategy of the fund, it will invest in fixed income securities with a higher degree of mark-to-marked component and lengthier maturity profile. As far as the allocation of surplus is concerned, the fund is biased towards the Corporate Debt space as can be seen from the fact that the average allocation into this instrument over the last year has been to the tune of 54%. Another observation that can be made here is that the fund has been taking a keen interest in Deposits from September 2013 and the exposure stands at 19% as of November 2013. Over the last year, the fund has been reducing exposure into G-Secs from 18% in December 2012 to 1% in November 2013. As for the Average Maturity of the fund goes, there has been a reduction from 4.47 years in December 2012 to 1.07 years in November 2013. A glance through the credit quality of the portfolio shows that more than 65% of the portfolio is concentrated into AAA, A1+ and AA+ instruments.

Performance: The fund has made an entry into our Recommended Funds list for the first time. Over a time period of 3 years and 5 years, the fund has generated a CAGR of 11.02% and 7.57% vis-à-vis 8.52% and 7.14% delivered by the benchmark.

Fund Manager's Comments: The strategy of this fund is aligned to take advantage of the current scenario.
Over the next 6 to 12 months, we see interest rates trending downwards due to:
* Fiscal deficit is like to be under 5% of GDP due to the Fiscal consolidation initiatives undertaken by the Government in the last few months.
* Current Account Deficit is likely to be around the $50 billion mark.
* Average WPI for this fiscal, might be lower than the last fiscal.
The fund will seek to capture higher accrual yields in the shorter end of the curve and take advantage of the downward movement in yields by taking limited duration exposure.
The duration of the fund is expected to be maintained in the range of 0.5 years to 2.5 years. The fund manager may deploy up to 15% of the corpus at the longer end of the yield curve by investing in liquid government securities tactically.
The fund intends to capture the steepness which is evident beyond the three month bucket, and consequently, offer a roll down benefit to investors in the next 6 to 12 months. Hence, investors with a 6 to 12 months investment horizon will be able to benefit from this strategy.

Inception Date: September 5, 2002

Fund Managers: Dwijendra Srivastava & Sandeep Agarwal

Asset Size: INR 1,462 crore (AUM as on November 2013)

Exit Load: 0.75% within 6 Months, Nil after 6 Months

Benchmark: Crisil Liquid Fund Index 
View Fact Sheet Buy Fund View Fund Card

PINEBRIDGE INDIA SHORT TERM FUND STANDARD PLAN- GROWTH
Investment Strategy: The fund's mandate is to invest into Debt securities and money market instruments with a short to medium-term time horizon. The Fund Manager will make investment decisions on the basis of different factors like credit analysis of individual exposures, macro-economic factors, etc. which will be used to estimate the direction of interest rates and level of liquidity. The quality and liquidity of the security will be selected by using a bottom-up approach. A detailed analysis of the portfolio shows that as of November 2013, the fund had around 44% of the portfolio allocated into Corporate Debt, 28% into Certificates of Deposit (CDs) and 16% into Cash and Cash Equivalents. However, during the initial months of analysis, the fund had a major chunk of its portfolio in Certificates of Deposit which was almost to the tune of 74% in March 2013 and then reduced to 52% in June 2013. In the same time period, the average exposure into Corporate Debt was 26%. During the debt market mayhem, the fund had taken a defensive position by moving into cash as is evident from the fact that in July 2013, the allocation into the same was to the tune of 79%. The fund normally takes tactical calls by taking exposure into Government Securities (G-Secs). As of November 2013, the exposure into this instrument was to the tune of 10%. Over the last year, there has been a reduction in the Average Maturity from 2.85 years in December 2012 to 1.89 years in November 2013. As far as the credit quality of the portfolio is concerned, investors can be rest assured that the fund will, at all times, be invested in AAA and A1+ instruments.

Performance: The best short-term fund, when we consider the risk parameters, places itself in this review as well. Over a time period of 3 years and 5 years, the fund has generated a CAGR of 8.97% and 7.93%, vis-à-vis the benchmarks CAGR of 8.25% and 7.79%, respectively.

Fund Manager's Comments: Liquidity and credit quality are two sides of the same coin. The high grade philosophy followed by us can take advantage of the interest rate cycles which have characterized the markets in the recent past. It will be pertinent to note that this same philosophy not only enabled us to raise more than 90% cash / cash equivalent holdings in our open ended debt funds during the tumultuous times of July-August 2013 but also provide daily liquidity for these products with zero exit load. It is pertinent to understand that the principles of fund management and expectations from a high grade philosophy will be quite different than probably a high yield strategy. In equity parlance - a large cap strategy as compared to a small or mid cap strategy.
Over the past few months, we have taken exposure to the short and medium term credits. As mentioned above, RBI has infused additional liquidity via increase in term repo amounts and also OMOs. These actions have currently brought the overnight rate close to the repo rate. A secular and sustained action by the Central Bank to align the overnight rate to the repo rate could positively influence the short and medium part of this curve. We remain constructive on this end of the yield curve. Sovereigns are likely to be continued to be preferred for duration calls.

Inception Date: March 6, 2008

Fund Manager: Vikrant Mehta

Asset Size: Rs 426 crore (AUM as on November 2013)

Exit Load: Nil

Benchmark: Crisil Short Term Bond Fund Index 
View Fact Sheet Buy Fund View Fund Card

BARODA PIONEER PUBLIC SECTOR UNDERTAKING (PSU) BOND FUND- GROWTH
Investment Strategy: The fund will predominantly invest into Debt securities issued by domestic Public Sector Undertakings. In addition to this, the scheme also has the flexibility to invest into companies based on various criterions like sound professional management, track record, industry scenario, growth prospects, liquidity of the securities, etc. An analysis of the portfolio shows that the fund has been betting big on Corporate Debt as can be seen from the fact that the exposure into the same has increased from 36% in December 2012 to 62% in November 2013. On the other hand, the fund has been gradually reducing its exposure into Certificates of Deposit (CDs) from 33% in December 2012 to 14% in November 2013 after touching a peak of 77% in May 2013. The Average Maturity of the fund stands at 2.58 years in November 2013 as against 2.46 years in December 2012.

Performance: The fund has made it to our Recommended Funds list for the first time. The fund has generated a CAGR of 7.70% and 8.21% over a time period of 1 year and 3 years vis-à-vis the benchmark which has delivered a CAGR of 4.25% and 6.60% during the same time period.

Fund Manager's Comments: On the backdrop of high CPI inflation, RBI has raised the policy rate by 25 bps and currently, it is at 8.00%. It is evident now that the Central Bank is more focusing on containing the CPI inflation rather than growth. Hence, we believe the ultra-short term rates to tighten due to rate hike and higher supply of money market papers in March 2014 quarter. However, in April we expect a sharp softening in 3 month and 1 year CDs.
Considering the current environment, PSU Bond fund portfolio will have a blend of 6M  1 YR PSU Bank CDs, PSU NCDs of 1yr to 3 yr maturity and Government Securities.

Inception Date: December 24, 2009

Fund Managers: Alok Sahoo & Hetal Shah

Asset Size: INR 80 Crore (AUM as on November 2013)

Exit Load: Nil

Benchmark: Crisil Composite Bond Fund Index 
View Fact Sheet Buy Fund View Fund Card

CANARA ROBECO INCOME- GROWTH
Investment Strategy: The fund will invest into Debt and money market securities of different maturities and risk profiles which will offer reasonable liquidity and returns. On the other hand, some portion of the surplus will be invested into rated and un-rated corporate bonds and debentures. During the course of the past year, the fund has been increasing its exposure into G-Secs from 43% in December 2012 to 67% in November 2013. On the other hand, the allocation into Corporate Debt which stood at 31% in December 2012 increased to 54% in March 2012, but was finally reduced to 21% in November 2013. As far as Average Maturity of the fund is concerned, it was initially marked at 7.68 years in December 2012, which was reduced to 3.1 years in July 2013 and then saw an increase to 9.05 years in August 2013. It finally stands at 6.10 years in November 2013.

Performance: The fund made an entry into our Recommended Funds list for the first time in January 2013 and continues to be one of the best performing Income Funds this year as well. Over a time period of 3 years and 5 years, the fund has generated a CAGR of 7.79% and 8.38% respectively vis-à-vis the benchmark which has delivered a CAGR of 6.60% and 6.77%.respectively.


Fund Manager's Comments: Canara Robeco Income aims to generate income through investment in Debt and Money market securities of different maturity and issuers of different risk profiles. The fund is actively managed and endeavours to capture the spreads between G Secs and Corporate Bonds along with duration play.
The important parameters that strengthen case for investing in the Income fund are
(a) current account deficit witnessing downward trajectory with improvement in trade deficit
(b) RBI expecting CPI to moderate going ahead
(c) Muted IIP & GDP growth
All this indicate that RBI will have to look at monetary easing in next couple of quarters to come.
The pre-election scenario does not give clear direction on rate movement at the long end of the yield curve on the back of unpredictable outcome of elections and Fed tapering, however with currency being stable and other aforesaid parameters the overall interest rates are likely be lower by end of 2014. On the Fixed Income side, we remain defensive in our allocation with more focus on low to moderate duration securities. However the fund will actively play across the yield curve and also on corporate bond spreads to take advantage on the expected downward trend in rates. Investors with 1-2 year investment horizon can look at staggered allocation to this fund.

Inception Date: September 19, 2002

Fund Manager: Akhil Mittal

Asset Size: INR 349 Crore (AUM as on November 2013)

Exit Load: 1% within 12 months, Nil after 12 months

Benchmark: Crisil Composite Bond Fund Index 
View Fact Sheet Buy Fund View Fund Card

TEMPLETON INDIA INCOME BUILDER ACCOUNT PLAN A- GROWTH
Investment Strategy: The fund's mandate is to actively manage the portfolio by investing into high quality fixed income instruments. An analysis of the portfolio shows that the fund has been reducing exposure into Corporate Debt from 69% in December 2012 to 47% in November 2013. The exposure into G-Secs has increased from 20% in December 2012 to 49% in April 2013 after which it has seen a reduction and as of November 2013 stands at 11%. An interesting observation that can be made here is that the fund's allocation into Cash and Cash Equivalents which stood at 4% in December 2012, was increased to 39% in August 2013 and then was drastically reduced to 3% in October 2013. It finally stands at 40% in November 2013. Since July 2013, the fund's exposure into Pass-Through Certificates (PTCs) and securitized debt stood at nil after having seen an increase from 7% in December 2012 to 9% in June 2013. The Average Maturity of the fund which stood at 6.41 years in December 2012 reached a peak of 11.56 years in April 2013 and as of November 2013 stands at 3.22 years.

Performance: The fund made an entry into our Recommended Funds list in January 2013 and continues to be the best performing income fund in this review as well. The fund has generated a CAGR of 9.71% and 9.15% over a time period of 3 years and 5 years. On the other hand, the benchmark has delivered a CAGR of 6.60% and 6.77% respectively.

Inception Date: June 23, 1997

Fund Managers: Umesh Sharma & Sachin Padwal Desai

Asset Size: INR 1,842 crore (AUM as on November 2013)

Exit Load: 0.50% within 1 year, Nil after 1 year

Benchmark: Crisil Composite Bond Fund Index 
View Fact Sheet Buy Fund View Fund Card

UTI DYNAMIC BOND FUND- GROWTH
Investment Strategy: The fund's mandate is to actively manage the portfolio in line with the view on the interest rate scenario. The fund is positioned between a short-term fund and a medium/long term fund. This is because it has the ability to mimic a cash fund when interest rates are rising while in a declining interest rate scenario, it can generate the returns of an Income Fund. An analysis of the portfolio over the course of 1 year shows that the fund's exposure into Corporate Debt has increased from 45% in December 2012 to 73% in November 2013. On the other hand, the exposure into G-Secs which stood at 47% in December 2012 has been reduced to 7% in November 2013. As of November 2013, the fund has no exposure into Certificates of Deposit (CDs) and Commercial Papers (CPs). As far as the cash allocation of this fund is concerned, it can be observed that during July 2013, the allocation into this was as high as 52% which has been reduced to 21% in November 2013. The Average Maturity has seen a drastic reduction from 10.9 years in December 2012 to 3.60 years in November 2013.

Performance: The best performing Dynamic Fund on our platform enters our Recommended Funds list for the third time. The fund has generated a CAGR of 8.40% and 9.29% over a time period of 1 year and 3 years. During the same time frame, the benchmark has returned 4.25% and 6.60% respectively.

Fund Manager's Comments: UTI Dynamic Bond Fund has the flexibility to counter a dynamic environment by actively managing the portfolio in line with the evolving interest rate scenario. It has the ability to mimic a cash fund when interest rates are rising thereby preserving capital & generate attractive returns of an Income Fund when interest rates are declining.
UTI Dynamic Bond Fund is currently positioned with a slightly higher average maturity compared to UTI Short Term Income Fund. The fund manager would take an aggressive position (by increasing the G-Sec exposure) or defensive position (by lowering the G-Sec exposure) as compared to our current neutral position as a clearer picture emerges on the borrowing program of the government and the interim budget. The fund manager will continue to actively manage G-Secs and may change the durationin view of change in market conditions and/or economic outlook.

Inception Date: June 16, 2010

Fund Manager: Amandeep S Chopra

Asset Size: Rs 694 crore (AUM as on November, 2013)

Exit Load: 0.75% on or before 89 days, Nil after 89 days

Benchmark: Crisil Composite Bond Fund Index 
View Fact Sheet Buy Fund View Fund Card

DSP BLACKROCK STRATEGIC BOND FUND- INSTITUTIONAL PLAN- GROWTH
Investment Strategy: The fund intends to actively manage the portfolio and ensure a high degree of liquidity in the portfolio. The duration of the portfolio will not exceed 15 years under normal circumstances. Over the last year, the fund seems to be biased towards the Corporate Debt instruments and G-Secs as can be seen from the fact that the average allocation into these instruments stood at 36% and 32% respectively. On the other hand, during the same time period, the next big exposure was taken into Certificates of Deposit (CDs), whose average allocation stood at 17%. A perusal of the Average Maturity shows that it was reduced from 7.62 years in December 2012 to 1.99 years in July 2013 and as of November 2013 stands at 6.69 years.

Performance: One of the better performing dynamic bond funds, it finds an entry into our Recommended Funds list this year as well. Over a time period of 3 years and 5 years, the fund has generated a CAGR of 8.48% and 7.08% as against the benchmark CAGR of 6.60% and 6.77% respectively.

Inception Date: May 9, 2007

Fund Manager: Dhawal Dalal

Asset Size: INR 2,133 crore (AUM as on November 2013)

Exit Load: 0.1% on or before 7 days, Nil after 7 days

Benchmark: CRISIL Composite Bond Fund Index  
View Fact Sheet Buy Fund View Fund Card

BSL DYNAMIC BOND FUND- GROWTH
Investment Strategy: The fund's intent is to design a portfolio which will dynamically manage interest rate movements in the short term by reducing duration in a rising interest rate scenario while increasing duration when interest rates are falling. At the same time, the fund manager will also consider yield spreads both on the gilt and corporate bond instruments to gain maximum value. Over the past year, the fund's portfolio saw the highest concentration in Corporate Debt and Government Securities with the average allocation into these instruments standing at 56% and 17% respectively. During the course of the year, the fund has been gradually increasing exposure into Commercial Paper from 5% in December 2012 to 12% in November 2013.The fund's average allocation into Cash and Cash Equivalents stand at 6% during the last year. The fund's Modified Duration has been reduced from 3.27 years to 2.37 years during December 2012 to November 2013.

Performance: The fund made an entry into our Recommended Funds list in June 2009 and continues to be a part of our Recommended Funds this year as well. Over a time period of 3 years and 5 years, the fund has delivered a CAGR of 8.79% and 8.78% vis-à-vis the benchmark's CAGR of 8.25% and 7.79% respectively.

Fund Manager's Comments:
* It is an actively managed income scheme that is largely driven by two guiding factors:
* "Absolute return bias" where it endeavors to preserve the purchasing power of the capital
* Generating "total returns" that comprises of capital gains and interest income
* For the purpose of exploring avenues of capital appreciation, it seeks to invest in government securities, corporate bonds etc.
* To capture higher interest income, it seeks to invest in structured credit instruments
* Within the provisions and limitations of the SID, the scheme intends to limit the modified duration to go beyond 3.5 years, as Fund manager believes that otherwise it may become harder to preserve the purchasing power of capital
* It may be considered by investors with investment horizon of 9 months and above

The scheme continues to invest with a 'barbell' strategy where about 72% of the net assets invested in up to 3 year bucket and ~25% of the net assets invested in the 5 year and above bucket. Large part of the portfolio continues to be invested in spread assets of 1-2 year bucket aiming for higher carry, and intended to insulate from yield curve volatility. It is advisable for investors to consider staying invested in the current regime, thus enjoying a healthy accrual with a chance to make capital gains as well. Stands at 2.3 years. The YTM of the scheme, as on 31 December 2013 is 9.71% with closing assets of 11831 cr & 9.31% YTM

Inception Date: September 27, 2004

Fund Manager: Maneesh Dangi

Asset Size: Rs 12,354 crore (AUM as on November, 2013)

Exit Load: 0.50% within 180 days, Nil after 180 days

Benchmark: Crisil Short Term Bond Fund Index 
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