IDBI Principal Balanced Fund Net Assets Climb

Mumbai, January 22: | Updated: Jan 23 2003, 05:30am hrs
Net assets of IDBI Principal Balanced Fund, an open-ended equity-balanced scheme, have witnessed a rise following higher exposure to the pharma sector, as well as oil and refinery stocks. The net assets have slightly increased from Rs 14.20 crore in November to Rs 14.70 crore in December.

Currently, pharma is the dominant sector, with 8.25 per cent exposure, up from 6.36 per cent in November. Exposure to oil and gas is also up from 4.89 per cent to 7.69 per cent.

The fund has also slightly raised exposure to IT consulting from 4.61 per cent to 5.36 per cent.

In the equity segment, the highest investment is in I-Flex Solutions at 5.36 per cent, up from 4.61 per cent in November. The fund has also increased exposure to HPCL from 2.32 per cent to 4.88 per cent. The fund has the primary objective of providing periodic returns and capital appreciation. The scheme is suitable for the investor, who seeks long-term growth, but does not want to take risks in pure equity.

The scheme was launched in October 2000. It offers two plans - growth and dividend. The minimum application amount is Rs 5,000 for new investors and Rs 500 for the existing investors.

Analysts said that though the scheme has posted positive returns over all periods, it has not been able to outperform the category average or the Sensex over shorter time periods and since inception.

Since inception, the scheme posted 0.55 per cent returns, while the category average stood at 2.16 per cent. Over six months, the scheme posted 3.74 per cent returns in line with the category average of 3.74 per cent. It has underperformed the Sensex, which gained 4.09 per cent, analysts added.