The Hindu Business Line : IT still dominates portfolio of Chola Opportunities

CHOLA Opportunities, the second infotech fund after Birla IT to be converted into a diversified scheme, has completed the process of deploying cash. It is now almost fully invested, with companies in the IT consulting & services sector still playing a dominant role in the portfolio.

IT, pharma and auto/motorcycle manufacturing segments currently account for 56 per cent of the assets, with the rest allocated to a wide range of businesses such as commodities, electrical equipment and media. Cash just constitutes three per cent of the portfolio.

Mr Sashi Krishnan, CIO of Cholamandalam Mutual Fund, said the conversion of the erstwhile Chola Freedom Technology to Chola Opportunities has led the scheme to a variety of sectors, all of which are perceived to have good growth potential.

The scheme, he added, continues to depend heavily on IT stocks, which collectively make up as much as 29 per cent of the assets.

The top counters in this segment, as on December 31, 2003 were Infosys, Satyam and HCL Tech. "We plan to draw it (exposure to IT) down as and when other sectors perform better. Our allocation will be reviewed once the Q3 numbers come in", he maintained.