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| Background: Unit Scheme '95 was launched in March 1995. Entry into the fund requires a minimum investment of Rs 1,000. Investments less than Rs 1 crore are subject to a 1.75 per cent entry load. |
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| Performance: US '95 may not have been a stupendous performer in roaring markets, but the resilience it has shown during bear phases has caught everyone's attention. |
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| The credit for this is attributed to the fund's ability to move in and out of stocks and bonds at the right time. Having witnessed a full market cycle, it has turned in a five-year annualised return of 23 per cent, as on October 17, 2003. |
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| Commencing operations with a fixed-income portfolio in March 1995, interest income contributed to the fund's returns till 1998. |
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| However, a fall in interest rates and the stock market turnaround of 1999 saw equities become the fund's mainstay, accounting for over 50 per cent of its total exposure. |
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| Nonetheless, the fund returned less than some of the more aggressive equity funds. But during the tech onslaught of 2000 (February-October), the fund lost a mere 3 per cent while its peers lost a massive 31 per cent. |
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| In the recent bull run, which started in May 2003, the fund has gained 38 per cent till October 17, 2003, as against the category average of 45 per cent. |
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| Portfolio: US '95 is strongly biased towards globally competitive and wealth-creating companies. |
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| Non-availability of past disclosures prevents us from commenting on the quality of the fund's debt holdings, but since 2002 it has become more particular about the credit quality of its picks. |
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| On the equity side, the fund participated in the rally of 1999 which was led by technology, pharma and FMCG stocks, but its exposure to IT stocks was limited. |
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| As a result, while most of its peers bled, the fund held its ground by moving quickly into bonds, and in the process realised some gains. This farsightedness helped it in the market downfall of 2001 also. |
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| Since 2002, the fund has gravitated towards equities, with limited participation in market favourites such as auto, energy and financial services stocks. |
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| Rather than riding a sector boom, the fund tends to keep a diversified portfolio. |
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| In the current year it has reduced exposure to FMCG and technology stocks. The fund's sobriety is also reflected in its debt management. |
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| During bullish times in the past one year, its exposure to gilts rarely crossed the 10-per cent mark. |
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| Outlook: Aggressive investors may not find US '95 very appetising. With a moderate growth strategy, the fund could well find a place in a conservative investor's investment basket. |
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