Investments can be considered in equity-oriented balanced fund Birla Sun Life '95, given its long-term steady performance.

Over a five-year period, the fund delivered compounded annual return of 15 per cent and bettered its benchmark by 4.5 percentage points. Although the performance appears impressive, it has trailed one of the top balanced funds, HDFC Prudence, by 3 percentage points.

With its flexi-cap approach to market capitalisation, the fund reduced its exposure to risky equity assets during market corrections, thus containing losses better than the equity-oriented balanced fund category average and top performer HDFC Prudence.

Despite holding mid- and small-cap stocks, the fund holds a portfolio with average market capitalisation of Rs 22,000 crore; higher than that of peers HDFC Prudence and HDFC Balanced.

This provides some comfort during volatile times such as the present one. That the fund outperformed pure equity fund category-average over three-and five-year periods demonstrate its ability to tide over volatility.

This said, the fund has underperformed its index CRISIL Balanced over short periods due to sharp declines in equities. To this extent, it is more suitable for long-term holding. Those who already have exposure to HDFC Prudence can consider investment in Birla Sun Life '95 as a diversifying option.

Performance: Over a one-year period, the fund has clocked absolute return of 11.5 per cent and bettered its benchmark by three percentage points. With its strategy of investing across market cap segments, the performance of the fund hinges on right sector and stocks calls.

The fund's one-year return was marginally impacted because it went underweight on top performing sectors such as consumer non-durables and pharma. However, its apt handling of debt portion helped to some extent.

The fund has increased exposure to short-term debt instruments such as certificates of deposits to take advantage of rising interest rates. An 80 per cent exposure to stocks with market capitalisation of over Rs 7500 crore may also help contain volatility.

Portfolio overview: The fund held 54 stocks in its April portfolio. Banks, pharma and petroleum sectors accounts for 22 per cent of the assets. In the debt portion, the fund invested 9 per cent of its assets in LIC Housing Finance debentures.

The fund is managed by Mr Satyabrata Mohanty and Mr Nishit Dholaki.

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