Objective

To provide periodic returns and capital appreciation over a period of time from a judicious mix of equity and debt investments, with the aim to prevent/ minimize capital erosion.

History

The fund was launched in January 1994 as a closed-ended fund by 20^th Century Asset Management Company, which was later acquired by Zurich India Asset Management Company. After its acquisition, the fund-Centurion Prudence was renamed as Zurich India Prudence Fund. The fund was converted into open-ended fund on its maturity in January 1999. Zurich India AMC is sponsored by Zurich Insurance Company which is a part of Zurich Financial Services Group head quartered in Zurich, Switzerland. The group is the largest insurance based group in Switzerland and is among the top ten asset managers of the world.

Fund Manager

The fund is managed by Mr. Prashant Jain, a B. Tech (IIT-Kanpur) and MBA (IIM- Bangalore). He has around 9 years experience in Mutual Fund Industry. Prior to joining Zurich India Mutual Fund in 1993, he worked with SBI Mutual Funds as Incharge of Funds. His strategy to maintain a well-spread portfolio with judicious mix of old and new economy stocks has worked well with funds’ performance. The fund is one of the top performers in its category. The ZIPF has declared dividends in January 95 (15 percent), September 98 (12 percent), August 99 (20 percent), November 99 (20 percent) and latest in April 2000 (15 percent).

Performance

The fund has generated consistent returns since inception. As per BT-mutualfundsindia study, the fund is a top performer in its category. The fund follows a sound strategy of maintaining a diversified portfolio investing in strong and growing companies from both technology and old economy sectors.

In the last three months, the fund has appreciated by 2.99 percent against a fall in the BSE Sensex of 0.34 percent. In the same period, similar category funds on an average have descended by 2.55 percent. In last one year, the fund has depreciated 5.49 percent in comparison to 10.58 percent fall in the Sensex. During the period, the similar category funds on an average have observed a fall of 22.32 percent. Owing to its consistent returns, in last three years, the fund has grown at an annual rate of 26.48 percent. The fund ranks third in 3-yr period among its peers.

Outlook

The fund is a decent investment for all investors who are averse to high risk and want their investment to grow at decent rate. Owing to the budget announcements supporting Cement, Automobiles and EOU Software and Food Processing sector, the fund stands a good chance of benefiting from the same. The removal of surcharge from corporate bodies and cut in dividend tax from 20 percent to 10 percent are positive sign for the mutual fund industry and should help the fund post better returns. The fund can be expected to perform well in the long run.