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S. Vaidya Nathan

INVESTORS can consider exposures in the Prima Fund despite the run-up in equity prices. However, investment can be phased out using options such as the systematic investment plan. This will enable them to capitalise on any declines in stock prices and also prevent locking in a large amount of money at higher price levels.

The fund has an impressive track record over a long period. Consistency in performance over different market phases and over most quarters is another factor that inspires confidence.

Given its sharp focus on mid-cap stocks, the risks are higher. But the fund has so far delivered returns that are more than adequate for the risks taken.

Stocks in: Zee Telefilms, Indian Hotels, Bank of Baroda, Shipping Corporation of India, Vesuvius, MICO, Madras Cement and Bayer are the additions to the portfolio in August.

Enhanced exposures: Holdings have been increased in UTI Bank, Ashok Leyland, Cummins India, Bongaigaon Refinery, Eicher Motors, LIC Housing Finance, Century Textiles, Oriental Bank of Commerce, Tamil Nadu Newsprint, BASF, Gujarat Gas, Ingersoll Rand, Marico, Bayer, Clariant, Aventis and IPCA Labs.

Stocks out: Tata Tea and Crompton Greaves.

Pared exposures: The fund has not pared holdings in any stock, apart from the two that have been dropped from the portfolio.

Top ten holdings: Raymond, Ashok Leyland, Mahindra & Mahindra, Eicher Motors, UTI Bank, Oriental Bank, Goodlass Nerolac, Monsanto Chemicals, Indian Rayon and Tata Tea.

Fund flows: Investors have been showing their confidence in the fund's impressive track record, despite the sharp spurt in stock prices and NAV. The net assets have risen by 22.2 per cent in August 2003. The NAV has increased by 8.8 per cent.

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