Financial Daily from THE HINDU group of publications
Sunday, Oct 09, 2005

Investment World
Features
Stocks
Port Info
Archives
Google

Group Sites

Investment World - Mutual Funds
Markets - Mutual Funds


DSP ML T.I.G.E.R Fund: Hold

Shanthi Venkataraman

DSP ML T.I.G.E.R (The Infrastructure Growth and Economic Reforms) Fund, which seeks to invest in stocks of companies that would benefit from economic reforms and an infrastructure thrust, has delivered a return of close to 70 per cent over the past year.

There has been a significant pick-up over the past three months, as stocks in the engineering and construction sectors — now a focus area for the fund — have galloped ahead of the rest.

Investors can, however, retain their holdings.

As a theme-based fund, it comes with a higher risk profile than a typical diversified fund; such funds are often relegated to the bottom of the performance charts when the theme runs out of steam. Although DSP ML T.I.G.E.R has a more diversified portfolio, a slow pace of reforms could limit choice and hurt the performance of the fund.

Theme-based funds also require an active investment strategy rather than "buy-and-hold" investing.

The fund is yet to build up a track record over a long period and across different phases of the market. It should, therefore, form only a small part of a portfolio of funds.

Although it was launched shortly after the crash of May 17, 2004, the fund's performance did not suffer too much, as the market had latched on to the theme of construction and banking stocks; these were the fund's top preferences at that time. It has been a good run for stocks in these sectors; stocks in the portfolio now trade at a price-earnings multiple of 21. Sectors such as media, textiles and fertilisers also figure in the portfolio, conforming to the fund's theme.

The fund has about 25 per cent of its assets invested in the engineering sector. Engineering, finance and construction are the top three sectors of the fund.

There are about 60 stocks in the portfolio, with holdings in any stock restricted to about 4 per cent.

The high level of diversification could work against the fund in a bull market. The fund is invested predominantly in large- and emerging large-cap stocks.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Tata Safari Dicor

Stories in this Section
Investment quiz


ICICI Pru Golden Years retirement plan
Construction is a Cinderella story
Earnings preview of IT majors — Better times beckon
On dating a Porsche!
Investing for children's education
DSP ML T.I.G.E.R Fund: Hold
Birla Equity Plan: Invest
A new scheme from Tata MF
Bharti Tele-Ventures: Buy
Dalmia Cement: Book profits
Sundram Fasteners: Buy
Indian Hotels: Buy
DCW: Hold
Geometric Software: Hold
Long-term capital gains versus loss on share deals
Gift to HUF
Corrective phase is not complete
A mixed trend in pivotal stocks
Focus of the week
Query Corner
A comparison of the Honda Accord and Hyundai Sonata
Ford's October Blast
Maruti hikes prices
Market buzz
Hero Honda woos the fairer sex
Discount restored
Less is more
Takeovers and substantial acquisition
Outlook for profit growth rates
Options guide
`This bull market is different from previous ones' — Tridib Pathak, CIO, Cholamandalam AMC
Sree Renuka Sugars: Invest at cut off
Century Extrusions: Reject
Women with enough money!


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line