The Hindu Business Line : StanChart equity fund invests in diverse stocks

A basket of 36 stocks makes up the portfolio of the Standard Chartered Premier Equity Fund, the scheme that made news when it was launched with a pre-set size of about Rs 300 crore.

In his first communication to unit holders since its introduction, Mr Naval Bir Kumar, MD of StanChart MF, has indicated that the fund has invested in a diversified portfolio in line with its plan to identify dynamic companies with good quality sponsors. The idea, he said, is to hold stocks "over a longer term and generate wealth rather than churn the portfolio to extract short-term returns."

The Standard Chartered Premier Equity Fund, which the MF claims is without any peers (considering its strategy), has tried to select companies that may not be recognised well on the stock market and may also have limited institutional interest at the moment.

"The fund will endeavour to perform as and when some of the stocks in the portfolio deliver on their promise and are recognised by other institutional investors," Mr Kumar said. He also urged unit holders to have a three-five year investment horizon.

Some of the bigger holdings of the fund as on January 31 are Shree Renuka Sugars (6.39 per cent), Maharashtra Seamless (5.46 per cent), Emco Ltd (5.31 per cent), Hinduja TMT (4.39 per cent) and Amtek Auto (4.58 per cent). Significant allocations have been made to segments such as industrial capital goods, consumer non-durables, software and ferrous metals, the fund informed.

As on January 31, the fund had provided absolute returns of 5.9 per cent since the allotment of units on September 28, 2005, trailing the benchmark index BSE 200, which has delivered 14.13 per cent.