A relatively new entrant to the category in 2010, this fund has nevertheless proved to be an ace performer, mostly retaining a four-five-star rating. The fund has managed this while making no compromises on credit quality and maintaining a balanced stance on portfolio duration. The fund is invested mainly in G-secs and AAA-rated corporate bonds.

Though the fund has only a five- year track record, it has managed to beat the benchmark and category in all these years. Its high returns in 2014 have helped lift overall returns since launch to 9.8 per cent.

The fund managed the interest rate shock of May-August 2013 particularly well, with a 2.8 per cent decline in its NAV that quarter, much lower than peer funds.

The fund has made the most of rebounding bond prices in the last one year, with a return of 13.1 per cent. Both this and the three-year return of 10.6 per cent put it well ahead of its category.

The fund has managed to beat peers by changing its portfolio maturity quite often in the last five years. While the average maturity tends to be at three-five years, it has climbed on occasion to as much as 13 years and fallen at times as low as a year. Currently, the fund appears to have a reasonably bullish view on rate direction as maturity in recent months to April hovered at nine-13 years.

With an expense ratio of 1.07 per cent, the fund is relatively inexpensive for its category, which should augur well for investors.

Overall, it's a fund that is ideal for you if you're keen to bet on rate cuts but at athe same time are not at all comfortable with taking on credit risks.