The Hindu Business Line : PruICICI Dynamic: Invest

Investors with a penchant for risk can consider investing in PruICICI Dynamic Fund. With a track record of over three years since launch, the fund has fared consistently. The returns have matched the higher levels of risks.

In line with several other funds from the PruICICI Mutual stable, Dynamic, too, is aggressively managed. Investors looking to diversify their portfolio may consider it as an option if they already hold established funds such as the HDFC Equity and Franklin Bluechip.

Investments can be made using the systematic investment plan (SIP) to capitalise on any broad market weakness. An SIP also allows investors to review decisions based on performance instead of committing funds at one go. An investment through this channel over the past three years would have delivered an annual return of about 65 per cent.

Performance: PruICICI Dynamic has return 96 per cent over the last year and negotiated the market volatility in 2005 reasonably well. Among the funds from the PruCICI stable, this performance is next only to PruICICI Emerging S.T.A.R. An aggressive churning of portfolio, coupled with expansion in the number of stocks held has enabled the fund to deliver returns superior to even some of the established funds.

The three-year return of PruICICI Dynamic is also not far behind funds such as HDFC Top 200 or PruICICI Power. Like a number of other diversified funds, PruICICI Dynamic has capitalised on the current growth themes in the broad market. Over the past six months it has increased exposures to cement and consumer goods. Grasim Industries and Bajaj Hindusthan have registered good returns.

Exposure to companies such as Hyderabad Industries, and Navin Fluorine International are some of the risky bets. An annual portfolio turnover ratio of three times indicates that the mid-and small-cap stocks are actively managed.

Over 60 per cent of the total assets have been invested in stocks with market capitalisation of over Rs 2,000 crore. This strategy has helped deliver steady returns despite the lacklustre performance by stocks in the mid-cap segment in recent months.

Fund facts: PruICICI Dynamic holds the option to invest even up to 100 per cent of the total assets in debt. The fund has not exercised this option so far and remains largely invested in equities. It has an asset base of Rs 759 crore. Mr Anil Sarin manages the fund.

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