The Hindu Business Line : HDFC Mutual Fund — Altered exposure in almost all stocks

While HDFC Mutual Fund has increased its exposures in steel, ceramics, automobiles and textiles, it did not make any significant changes in its heavyweight stocks, barring Satyam Computer Services.

WITH the bull market showing no sign of tiring out, it is interesting to study the discernment of fund houses in re-jigging their portfolios. HDFC Mutual Fund — a joint venture between HDFC and Standard Life Investments of UK — has altered its exposure in almost all stocks over May and June 2005. Business Line takes a look at the changes effected by the fund-house in its equity funds for the above period.

The analysis was based on details obtained from the mutual fund database NAV India.

HDFC Mutual Fund has an equity portfolio of more than 130 stocks, spread over various sectors and sizes. About 35 per cent of the exposures are concentrated in the IT, banking and electric equipment sectors. The fund took fresh exposures to nine stocks while opting for the exit route in eight.

About 60 per cent of its fresh exposures in the two months were in metal-related stocks such as Sesa Goa, Jindal Saw and Man Industries.

About 20 per cent of fresh exposures were in small-cap pharma and chemical stocks.

Among the stocks liquidated, Jet Airways constituted 70 per cent in terms of value. With this exit, the fund house has completely cut its exposure to the airlines sector.

The stock was part of the portfolio of HDFC Premier Multi-Cap Fund. The scheme has instead enhanced exposures in Amtek Auto.

sA sector-wise analysis reveals that HDFC Mutual Fund has increased its exposures in steel, ceramics, automobiles and textiles. The fund did not make any significant changes in its heavyweight stocks, barring Satyam Computer Services.

It cut down the number of shares held in the company by 20 per cent. Hindustan Lever was conspicuous by its increased weight in the portfolio. Maruti Udyog and Mahindra & Mahindra were other frontline stocks in which the fund enhanced exposures.

Cranes Software International, Hindustan Oil Exploration and Television Eighteen India were some of the small-cap stocks that found favour.

Notable among the stocks in which HDFC Mutual pared exposures were GE Shipping, Century Textiles and Associated Cement Companies.

Fund facts: HDFC Mutual Fund was launched in 2000 and had assets of about Rs 5,200 crore under management in its equity funds as of June 2005.

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