The Hindu Business Line : PruICICI Dynamic Plan

PruICICI Dynamic Plan is an open-ended scheme with a rare mandate to invest 100 per cent of its funds either in equity or in debt. The strategy to invest will be based solely on the discretion of the fund manager without any prior information to investors. From a mid-cap bias over the past year, the fund has moved gradually towards large-cap stocks. Now close to 60 per cent of its assets are invested in stocks with a market capitalisation of over Rs 2,000 crore.

A look at the fund's portfolio reshuffle between May and August 2006, shows that PruICICI Dynamic Plan increased its exposure to sectors such as cement, banks, petroleum products, auto and power. The transportation sector was added afresh. Though software attracted the attention of most diversified funds, Pru ICICI reduced its exposure to the segment marginally along with capital goods, consumer non-durable, non-ferrous metals and pharmaceuticals.

Asset allocation to the cement sector increased. Grasim Industries and Century Textiles were added. Shree Cement's stock price almost doubled in the first half of 2006 and the fund booked profits partially in this counter.

Banking stocks were the ones that under-performed the market over the past year. But they turned out to be a good bet during the quarter under review. This sector cornered nine per cent of the assets in PruICICI Dynamic's portfolio. Exposure to State Bank of India, Bank of Baroda and ICICI Bank increased, while Oriental Bank of Commerce moved out of the portfolio.

Four-wheeler stocks Mahindra and Mahindra and Maruti Udyog both declared better sales numbers and found higher fund allocation. Exposure to the auto ancillaries segment was also enhanced and the lone stock in the portfolio is Amtek Auto.

From the software sector, HCL Technologies and TCS were added to the existing ones. Mphasis BFL was the only stock to lose a bit of fancy and the number of shares in the portfolio was down almost 50 per cent from the previous quarter. The newly listed Tech Mahindra was added afresh.

Sugar stocks, which were stars in the consumer non-durables space few months ago, appeared to lose some steam, with PruICICI Dynamic cutting exposure to this sector.

Fund facts: PruICICI Dynamic Plan was launched in October 2002.The fund is managed by Mr Anil Sarin and assets under management is Rs 1,137 crore.

Suresh Parthasarathy

More Stories on : Mutual Funds | Mutual Funds | Portfolio Moves

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