Birla Balance was launched on September 6, 1999 and went open ended on November 1,1999 while the Prudential ICICI Balanced Fund was launched on October 7,1999 and went open ended on November 11,1999. Apart from the timing of the two funds, their strategies are markedly different.

Prudential ICICI's asset allocation is 65.04 in equity and 34.96 per cent in debt as on December 30,1999 when its fund size was Rs 320.10 crore while in the case of Birla Balance it is 70 per cent in equity and 30 per cent in debt/cash with the fund size at Rs 537.62 crore.

Sectorally, Prudential's equity investments are spread over software (24.54 per cent), miscellaneous (9.05 per cent), healthcare (8.21 per cent), auto (5.04 per cent), consumer (5.51 per cent), telecom(4.18 per cent), diversified (3.3 per cent) and cement (2.25 per cent) among others.

On the other hand, 94 per cent of Birla's equity investments is concentrated in software (54 per cent), pharmaceuticals (14 per cent), entertainment (10 per cent), fast moving consumer goods (9 per cent) and tractors (3 per cent).

Ever since it went open ended, Prudential's balanced fund has trailed the Birla Balance by about 80 paise in terms of net asset value. But from early January 2000 when software stocks went into a tailspin, the gap between the NAVs of the two funds narrowed down considerably and as on January 18, 2000 the gap had reduced to only 9 paise as Birla Balance's NAV declined more steeply during the current month by over a rupee.

The other major difference lies in the debt portfolio composition with Prudential parking almost 13 per cent of its net assets in over seven-year gilt-edged securities while Birla Balance prefers to have over 17 per cent in liquid assets like call/money marketinstruments.