Launched on June 24, 1997, Kothari Income Builder mobilised Rs 8 crore during the initial offer. The fund has seen its net asset value rise to Rs 12.29 (as on December 22 for the growth plan). Between March 31 and December 23, the NAV of the growth plan has moved up from Rs 11.13 to Rs 12.29. A no-load fund, Income Builder offers growth and dividend options. The fund gave a dividend of 10 per cent in May this year under the dividend plan. Thefund has given a return of 14.98 per cent since June 1997. As on November 30, 1998, the fund has given a return of 12.97 per cent in the last one year.

The fund has adopted a strategy of investing fresh inflows in short-term paper with an investment horizon of 3 months to one year. The fund portfolio has an average maturity profile of less than two years. According to the fund manager, R Sukumar, ``returns from securities in the band of 3 months to one year are optimal.''

As on November 30, 1998, the fund had total debt investments worth Rs 36.72 crore, which constituted 81.87 per cent of the total corpus of Rs 44.83 crore. The remaining (18.13 per cent) is invested in money market instruments. The yield to maturity for the bond portfolio is 15.88 per cent as on November 30. The fund has the largest exposure to banks and financial institutions which constitute 48.81 per cent of the total assets.

The fund is invested in debt instruments of chemicals and fertilisers, FMCG, hotels and resorts, metals,petrochemicals, tyres and power generation.