K Bond Short Term Plan has beaten the category consistently in recent months
Background: Launched in April 2002, K Bond Short Term Plan offers dividend and growth options. The minimum initial investment is Rs 5,000. The fund's expense ratio of 0.88 per cent is towards the lower side of the category.
Performance: K Bond Short Term Plan clocked an average performance in 2002. It has, however, beaten the category in 2003 so far. The short-term offering from Kotak Mutual Fund has posted year-to-date returns of 4.10 per cent against the category's 3.93 per cent as on August 14, 2003. Since launch, the fund has produced annualised returns of 7.85 per cent.
Portfolio: The fund initially resisted gilts to avoid volatility in net asset value (NAV). It followed a conservative approach in 2002 which was evident from the low average maturity of its portfolio compared to its peers.
For instance, prior to the rate cut in October 2002, the fund had an average maturity of one year
