The Hindu Business Line : ING Vysya L.I.O.N.

ING Vysya L.I.O.N. (Large-cap, Intermediate-cap, Opportunities, New offering) Fund is an open-ended diversified equity fund with the mandate to invest across market-cap categories. Over the past quarter, its asset size moved southward, from Rs 139 crore to Rs 126 crore; the NAV rose 12 per cent. The fund has a well-diversified portfolio comprising 23 sectors, the top ten stocks accounting for 43 per cent. The fund appears to be aggressive in churning its portfolio. Among the recent changes it made in the portfolio, Reliance Industries replaced Infosys in the top slot.

The fund increased exposures to sectors such as software, banking, cigarettes, power equipment and industrial electronics. It also added sectors such as housing finance, telecom services and transmission towers. Sectors that underwent pruning were refineries, cement, pharma, commercial vehicle and construction.

Banking stocks, which had a sharp run-up the past quarter, lost steam after the recent CRR hike. During the quarter, the banking sector's weight in the L.I.O.N. portfolio grew 145 per cent. UTI Bank moved out and the fund added Bank of Baroda, Punjab National Bank, ICICI Bank and State Bank of India. Exposures to Indian Overseas Bank were reduced.

Exposure to software stocks was enhanced marginally. The fund booked profits partially in HCL Technologies, Infosys and TCS; Wipro was the new entrant. The recently listed Tech Mahindra underwent profit-booking and moved out completely.

Telecom services stepped into the portfolio, cornering 5.6 per cent. Bharti Airtel and Reliance Communications represent the space.

Hindustan Lever, Kalpataru Power, Sterlite Industries and HDFC were also added during the quarter.

Despite the brisk construction activity happening across India, this fund reduced exposures to the cement space — Birla Corporation, Grasim Industries and Madras Cements all underwent pruning. Jaiprakash Associates was the lone stock to represent the construction sector; though its holdings were scaled down significantly. The stocks that moved out of the portfolio were Colgate, Dabur, Mahindra and Mahindra, Ranbaxy, Vimta Labs and United Phosphorus.

Fund facts: ING Vysya L.I.O.N was launched in December 2005. Mr Paras Adenwala manages the fund.

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