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Aarati Krishnan

INVESTORS in Sundaram Select Focus can retain their investments. The fund has piggy-backed on the stock market rally of the past one year, doubling its NAV over this period. The portfolio strategy revolves around focussed investments in one or two sectors, so the fund carries a higher risk profile than is normal for a diversified equity fund.

Conservative unit-holders who are averse to downside risk can consider booking profits on a part of their holdings to lock into the gains made over the past year. Others can stay on.

The portfolio has seen substantial activity between September 30 and October 31. The fund has booked profits on a range of its top holdings and has stepped up IT exposures.

Stocks in: Bharat Forge, Satyam Computers and BEML were the new entrants to the portfolio during the month.

Stocks out: The fund completely liquidated exposures in Gujarat Ambuja Cement, MTNL and Hindustan Lever.

Exposures enhanced: The fund stepped up its exposure to Hindalco, BHEL, PNB and IPCA labs during the month.

Exposures pared: The fund booked profits on seven of the ten top holdings held at the end of September. The fund appears to have trimmed exposures to SBI, Grasim, Tata Steel, Tata Motors, Maruity, Reliance, Infosys, L&T, Indian Oil, ONGC and Tata Power.

Net assets: The fund appears to have suffered some net outflows during the month of October. The net assets have declined marginally from Rs 65 crore to Rs 63.9 crore, despite a 14 per cent appreciation in the fund's NAV over the month.

Sectoral allocations: Metals and mining — at 17.7 per cent of the assets — and automobiles remain the fund's top two sectors. The fund has, however, stepped up allocation to banks (12.5 per cent) and IT stocks (6.2 per cent).

The cash position has risen from less than 1 per cent at the beginning of the month, to about 8 per cent by October end.

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