The scheme seeks to generate capital appreciation with current income from a combined portfolio of equity and debt instruments. Under normal circumstances the scheme would take 60 % exposure to equity instruments while the balance would be allocated to debt instruments.

If you want an aggressive balanced fund that will trounce the category in bull markets, this is the fund for you. The rating has been four or five stars for the last five years.

Strategy: This fund maintains a more or less steady-state asset allocation between equities and debt. Since March 2013, 70 to 72 per cent of the portfolio has been in equities, irrespective of market conditions. The fund avoids buying overvalued assets . The key tools used to achieve this objective are a target margin of safety and effective diversification, apart from a penchant for quality stocks. The fund's equity portfolio has higher mid- and small-cap allocations than most balanced peers. Since launch, within the equity portfolio, the average large-cap exposure has been 57 per cent, average mid-cap exposure 27 per cent, with the rest in small-cap stocks. The higher mid/small-cap holdings explain the fund's stellar returns in every bull run. The debt portion is invested mainly in good-quality bonds, recently extending duration to take advantage of falling interest rates.

Performance: A 52.7 per cent return in the last one year has put the fund 26 per cent ahead of the benchmark and 9.4 per cent ahead of its category this year. Three-year returns at 23.5 per cent and five-year returns at 18.7 per cent also trounce the category by 3.4 and 4.9 per cent, respectively. The fund's ten-year record is quite comparable to pure equity funds. Despite its aggressive flavour, the fund has contained downside well in the bear markets of 2011 and 2008, relative to its peers.

What we don't like: The fund's higher mid- and small-cap allocations and its relatively high equity allocations, even in bear markets, can lead to higher volatility in returns relative to peers.

Why invest? This is a balanced fund that takes no half measures. You won't regret owning it in any secular bull run.