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S. Vaidya Nathan

UNITHOLDERS in the Master Value Unit Plan of UTI Mutual Fund can pare exposures to lock into gains following the NAV spurt over the past six months. The fund focusses on mid-cap and small-cap stocks.

There are a few large-cap holdings such as ONGC, HPCL and BPCL. The bullish phase in mid-cap and small-cap stocks over the past six months, as well as in the first half of 2001, has helped shore up the NAV to a healthy level. The fund's track record over the long term has also been good. However, with its investment strategy oriented towards mid-cap and small-cap stocks, the fund carries a higher degree of risk.

So far, the returns have been adequate to compensate for the higher risk element. Given its track record, investors could contemplate exposures at lower prices as the corrective phase in stocks may not have yet run its course.

Stocks in: Vesuvius, National Aluminium, Ucal Fuel, Apollo Tyres, LIC Housing Finance and Jayshree Tea.

Enhanced exposures: Vashishti Detergents, Alstom, Bombay Dyeing and Marico.

Stocks out: Bank of Baroda, Maruti Udyog, MTNL, Container Corporation, CMC, Shree Rama Multi-Tech and TTK Prestige.

Pared exposures: Automotive Axles, Orchid Pharma, ONGC, Sundram Fasteners, BPCL, GAIL, Great Eastern Shipping, Goodlass Nerolac, Abbott, Raymond, Elbee, HPCL, Pidilite, Alfa Laval, Ion Exchange, IPCL, Eveready. Ballarpur Industries, Himmatsingka Seide, Tata Chem, JK Corp, Birla Corp and Welspun Stahl.

Top ten holdings: Colour Chem, Marico, Alfa Laval, Welspun Stahl, HPCL, Pidilite, Himmatsingka Seide, Abbot, Tata Chemicals and Tata Infomedia.

Fund flows: The fund has suffered outflows in October. Despite the steady uptrend in stock prices, the net assets have declined 6.9 per cent.

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