Middling Show

FUND PICK: Templeton Short-Term Income Plan

 Background: Templeton Short-Term Income Plan was launched in January 2002. The fund carries a minimum investment tag of Rs 1 lakh. It does not charge any contingent deferred load.

 Performance: The fund has been an average performer. Though it hasn't always raced ahead when interest rates moved down, the fund has displayed consistency in returns for one and three-month periods.

 Its risk-adjusted returns are in the first half of the category. Deft management of credit risk and conservative handling of interest rate risk helped the fund post steady returns.

 Over the trailing six-month and one-year period, the fund has given returns of 3.78 per cent and 7.87 per cent respectively while its peers have delivered 3.69 per cent and 7.67 per cent over the same time period.

 Besides, the fund's one-week return since the repo rate cut is 0.40 per cent against an average short-term fund's gain of 0.33 per cent.

 Portfolio: Launched in early-2002 when AA and associated bonds yielded 1 per cent more than AAA bonds, one-fourth of the fund