The Hindu Business Line : Franklin India Flexi-Cap

This week we analyse the fund's portfolio shuffle between April and July 2006. Its assets went down, along with the market, by 14 per cent during the same period. The fund size as on July 2006 stands at Rs 2,674 crore.

The fund has 48 stocks in its portfolio and its top five sectors account for 50 per cent of the asset allocation.

Frontline software stock Infosys, which announced better-than-expected financial guidance, has cornered 6 per cent and occupied the top slot in the portfolio, replacing the auto ancillary major Mico.

The fund has pruned its allocation to the banking sector, which under-performed the market over the past year. The allocation was down to one-fourth, at 2.5 per cent. Other sectors that lost favour were auto and consumer non-durables.

Software, auto-ancillaries, cement, pharmaceuticals, petro-products and construction were the favoured sectors and allocation to these was enhanced.

ICICI Bank, Centurion Bank of Punjab and Federal Bank were the stocks that moved out of the banking sector. Exposure to public sector major State Bank of India was pruned by one-sixth in comparison to the previous quarter.

In the auto space, Bajaj Auto exited the portfolio. While the fund enhanced positions in TVS Motors, exposure to the Maruti Udyog stock was pared.

In consumer non-durables, Hindustan Lever, Tata Coffee and Tata Tea moved out, along with Triveni Engineering and JK Investo Trade India.

The exposure in Infosys Technologies increased almost 60 per cent compared to the corresponding previous quarter. HCL Technologies was sold partially.

In the auto-ancillaries space, there was higher exposure in Sundram Fasteners and the fund accumulated MICO and Pricol. The fund took fresh exposures in Gujarat Ambuja Cements.

Petroleum major Reliance Industries was added to the portfolio in the quarter along with Aditya Birla Nuvo, Cipla, GlaxoSmithKline Pharma, Marico, and United Phosphorus.

Fund Facts: The fund was launched in March 2005 and is managed by Mr K.N. Siva Subramanian and Mr Sukumar Rajah.

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