The Hindu Business Line : Tata Pure Equity Fund

Tata Pure Equity Fund is a predominantly large-cap fund with marginal exposure to mid-cap stocks (market capitalisation less than Rs 5,000 crore). For the quarter ended April 2007, the fund's assets expanded marginally. Here is a look at the portfolio moves over the quarter.

The fund has a well-diversified profile across sectors and the top ten stocks account for 42 per cent of the assets. Bharti Airtel moved to the top slot, replacing IT major Infosys Technologies. Cement stocks, which underwent a de-rating after the Budget, were weeded out and exposure to the sector brought down significantly. ACC, Kesoram Industries and Shree Cements moved out while exposure to Grasim Industries and Ambuja Cements was cut drastically.

Despite a marginal cut in exposure to capital goods, the sector still occupies the top portfolio slot. The sector underwent a minor re-jig with pruned holdings in Larsen and Toubro and Siemens, and higher exposure to ABB and Crompton Greaves.

Texmaco was retained without any change in holdings. Aban Lloyd Chiles Offshore was added afresh. Auto exposure was also trimmed. Frontline two-wheeler maker Bajaj Auto exited the portfolio and exposure to Mahindra and Mahindra was reduced.

Tata Pure Equity increased the asset allocation to oil marketing companies. HPCL was added afresh, while exposure to Reliance Industries was trimmed. The fund reduced the asset allocation to software and holdings in frontline stocks such as Infosys and Satyam Computer were pared. Wipro, however, was added. Exposure to Tech Mahindra almost doubled.

With increased allocation to banking, HDFC Bank was added and the fund, apparently bullish on State Bank of India, almost doubled its holdings. The fund pared exposure in Andhra Bank and ICICI Bank.

Media stocks turned out to be favourites, with their weight in the portfolio enhanced. T.V. Today and Television Eighteen India were new entrants, while holdings in Hinduja TMT were pruned.

Exposure to the telecom sector moved up marginally. Holdings were added to in Bharti Airtel and Reliance Communication.

Tata Pure Equity fund was launched in May 1998 and Mr Venugopal manages the fund.

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