Financial Daily from THE HINDU group of publications
Sunday, Dec 08, 2002
Financial Daily from THE HINDU group of publications Sunday, Dec 08, 2002 |
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Investment World
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Mutual Funds Markets - Mutual Funds Sundaram Growth: Hold
UNITHOLDERS can hold their current investments in Sundaram Growth Fund. The fund has, since launch, significantly out-performed the BSE 200 index. Going forward, it holds potential to outperform the index in the event of a market rally. However, the returns delivered over the past five years have been modest in comparison to some of the diversified equity funds in the market, such as Franklin India Bluechip and Zurich India Equity Fund. Therefore, investors contemplating fresh exposures to equities may first consider these alternatives, before investing in Sundaram Growth Fund There appear to be two distinct aspects to the Fund's portfolio strategy. One, the fund deliberately keeps its exposures to individual stocks at 5 per cent or less. Therefore, it avoids excessive concentration in a single holding. Two, the portfolio appears to be managed quite aggressively, with many key positions changing from month to month. The fund held a significant portion of its assets (11.6 per cent) in cash at the end of October. If this practice continues, the fund could underperform fully-invested peers in the event of a sharp run-up in equities. The following changes were made to the portfolio in October: Stocks added: Nalco and HCL Technologies. Holdings enhanced: The fund acquired additional shares in ONGC, Satyam Computers, Ranbaxy, Tisco and Karur Vysya Bank. Holdings pared: The fund reduced its existing exposures in Grasim, ICICI Bank, HPCL, Hindustan Lever and Polaris Software. Sectoral changes: IT, chemicals, and oils and gas are some of the sectors where the fund significantly enhanced exposures during the month. The IT exposure stood at 14.8 per cent on October 31, followed by chemicals (10.4 per cent) and banks (9.5 per cent). The exposure to banking and pharma stocks fell marginally over the month.
Aarati Krishnan
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