Financial Daily from THE HINDU group of publications
Sunday, Nov 10, 2002
Financial Daily from THE HINDU group of publications Sunday, Nov 10, 2002 |
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Investment World
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Mutual Funds Markets - Mutual Funds Kotak Mahindra K-30: Switch
K-30, the diversified equity fund from Kotak Mahindra Mutual Fund, has consistently held a significant portion of its net assets in cash over the past few months. This is in keeping with the alterations in the scheme's structure early this year, which allowed the fund to invest a significant portion of its assets in cash. However, this could also lead to its underperformance vis-à-vis peers if there is a market rally. The fund's track record so far has been mixed. While it has outperformed the S&P CNX Nifty over one- and three-year periods, and since launch, it has been beaten by quite a few of its competitors. The portfolio is actively managed. In September 2002, the fund liquidated a range of its holdings. This has directly enhanced its cash position: Stocks added: The fund added MTNL, GlaxoSmithKline Pharma, and Apollo Tyres to its portfolio. Holdings enhanced: The fund has added to its existing exposures in HPCL, Hero Honda, HDFC Bank, Dr Reddy's Labs, Cipla and Adlabs Films. The exposure to pharma stocks increased considerably as a result. Holdings trimmed: Exposures were trimmed in SBI, ITC, Britannia, Ranbaxy, Telco, Infosys, L&T, and Essel Propack. The above changes have altered the sectoral exposures. While the allocation to FMCG stocks has fallen from 15 per cent to around 11 per cent, that to pharma stocks has risen from 7.7 to 10.26 per cent. IT exposure has slumped from 8.4 per cent to 5.7 per cent. The fund had 32 per cent of its assets invested in call deposits as of September 30, enhanced from 24 per cent at the end of August. The fund also had a net payables position amounting to 10 per cent of its assets. This suggests that it has actually borrowed, though its portfolio is invested substantially in cash equivalents.
Aarati Krishnan
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