The Hindu Business Line : DBS Chola Multi-Cap Fund: Auto, Telecom trimmed

DBS Chola Multi-Cap Fund was one of the funds that came out with the objective of investing across market-cap categories depending on market conditions. Here is a look at how this fund managed its portfolio over the quarter, in which the market staged a strong recovery.

Sectors Favoured: Auto ancillaries, banks, cement, construction, courier, capital goods, and petroleum were the favoured sectors during this period. While Amtek Auto and Balkrishna Industries continue to represent auto ancillaries, the fund has accumulated holdings in Motherson Sumi Systems.

The banking sector found favour with several diversified funds and it handsomely reward investors this quarter.

Allahabad Bank, Federal Bank and Karnataka Bank remained in their portfolio without much change, while there was some churn in Bank of Baroda, Oriental Bank of Commerce and ICICI Bank.

Cement underwent a minor rejig, with reduced exposure in Grasim Industries and Madras Cements. Ultratech Cement, however, was fancied by the fund and the asset allocation in the portfolio trebled to corner 4.8 per cent. Kesoram Industries was the lone stock added. Exposure to construction sector increased marginally. D.S. Kulkarni, Mahindra Gesco Developers and Unitech represent this space. The fund booked profit partially in Unitech, which had a dream run the past year.

It was one of the few funds with relatively lower exposure to the capital goods sector until early May and it subsequently increased its exposure to the sector after the correction. It now accounts for 11.5 per cent of the asset allocation. Exposure to Larsen & Toubro, Crompton Greaves, Voltas were all stepped up, while the fund sold holdings in BHEL.

Crude prices, which hit an all-time high earlier in the quarter, have cooled off since. BPCL was added afresh and exposure to HPCL almost doubled.

Sector churn: Auto, consumer non-durables, telecom and transportation were churned during this quarter. The auto sector underwent trimming and the fund reduced exposures in the lone stock Mahindra and Mahindra.

The transport sector exposure also went down marginally and holdings in Shreyas Shipping and Logistics were reduced while Transport Corporation of India was accumulated.

DBS Chola Multi-Cap was launched in January 2005 and Mr Tridib Pathak is the fund manager.

Suresh Parthasarathy

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

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