The Hindu Business Line : <I>Reliance Equity Opportunities </I>

In February 2006, 95 per cent of the assets of Reliance Equity Opportunities were invested in equity. We take a look at the reshuffling in the fund's portfolio after September 2005. The top 10 stocks accounted for 40 per cent of assets. As of February 2006, 75 per cent of the assets were invested in stocks with a market capitalisation of over Rs 2,000 crore.

Sector shuffle: Between September 2005 and February 2006, the engineering sector retained maximum allocation. Petroleum products and banks took the backseat on the back of lacklustre performance in the period. Pharma and software took centre-stage.

Aventis Pharma and Pfizer were stocks that increased the weight of pharma sector in the portfolio. In software, exposure to Tata Consultancy Services more than doubled while holdings in i-flex Solutions were trimmed. The fund's metal holdings changed. Tata Steel appeared to have found favour again as the fund made fresh entry into the stock. Jindal Saw was added while SAIL and JSW Steel lost sheen and took the exit route.

Cautious view: Allocation to auto stocks declined from 5.4 per cent in September 2005 to 3.8 per cent in February 2006. Exposure to Tata Motors, Mahindra & Mahindra and Cummins India were reduced. Relative underperformance of banking stocks over the above period may have prompted to fund to sell holdings in Punjab National Bank. Exposure to State Bank of India was also cut by more than 40 per cent. A sharp run up of consumer goods stocks may have prompted the fund to book profits.

Strategy: The fund seeks to identify opportunities that arise in the markets across sectors and across different market capitalisation segments.

: Reliance Equity Opportunities was launched in March 2005 and is managed by Mr Sunil Singhania and Mr Sailesh Raj Bhan. The asset base as of February was Rs 2,024 crore.<137>

Vidya Bala

More Stories on : Mutual Funds | Mutual Funds

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