The Hindu Business Line : Birla Midcap Fund: Greater interest in banks

The past year was a testing time for mid-cap funds with markets going through volatile phases. Many mid-cap funds under-performed their large-cap peers significantly.

Here is a look at the portfolio changes made by Birla Midcap during the quarter-ended April, over which time the fund's asset size grew 12 per cent.

The latest portfolio had 46 stocks, with the top three sectors accounting for 30 per cent of the portfolio. Capital goods witnessed enhanced asset allocation and replaced auto ancillaries in the top slot. Crompton Greaves was added afresh, even as exposures to Thermax and Bharati Shipyard were increased. The fund partially sold the shares of Bharat Bijlee.

The banking sector attracted attention for its superior performance over the last year. Asset allocation to the sector was doubled during this quarter. Syndicate Bank, Indian Bank, ING Vysya Bank, Centurion Bank, Dena Bank and Bank of Baroda were the new additions to the portfolio, while Federal Bank was retained without much change.

Allocation to auto-ancillaries moved up marginally, with increased exposure to Apollo Tyres, MRF, Amtek and Sundaram Clayton. Automobile Corporation of Goa was added afresh.

The fund pruned exposure to industrial products as a result of which Kirloskar Oil Engine and Sintex witnessed a reduction in the portfolio weight. IT however, completely exited TRF.

The fund remained cautious on IT, despite the sector performing well. The fund pruned exposures to NIIT Technologies, while 3i Infotech was retained without any change in holdings. Consumer non-durables saw a significant reduction as Radico Khaitan, Glaxosmithkline Consumer Healthcare and EID Parry moved out.

United Spirit was retained, but after some pruning. In the cement segment, Madras Cements moved out of the portfolio while Birla Corporation and Mangalam Cement stayed on without any change in holdings.

Mr Jayesh Gandhi manages the fund.

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