The Hindu Business Line : Focus on infrastructure

Theme-based funds tend to reward investors when clear trends are discernible in various sectors. For the past year it was the turn of infrastructure funds to outpace their diversified peers, and by a good margin. Here is how the theme based fund DSPML T.I.G.E.R and Canara Rebeco Infrastructure reshuffled their portfolio over the past year.

DSPML T.I.G.E.R.

The fund has a very well-diversified portfolio and the latest fact-sheet consists of 72 stocks. Over the quarter, the fund grew 45 per cent to Rs 2,608 crore, and its NAV grew over 21 per cent for the same period. A sizeable portion of the fund is in non theme-based investment.

Over the past two quarters, it reduced the exposure to capital goods sector and bought more into the construction space. The fund appears to adopt the buy-and-hold strategy; with close to 40 stocks in the portfolio held for more than a year. During the quarter, BEML was the new addition to the portfolio and holdings in Bharat Electronics almost doubled.

The fund appears bullish on the prospects of oil marketing companies. It has stepped up the exposure to BPCL and HPCL and has doubled its investment in Indian Oil Corporation. The fund has pruned the exposure to Centurion Bank of Punjab, IVRCL, Larsen & Toubro, HDFC Bank and DLF over the past quarter. However, DSPML T.I.G.E.R has accumulated Idea Cellular and India Cements substantially over the same period.

Canara Rebeco Infrastructure Fund

The fund predominantly invests in the infrastructure theme and has 38 stocks in its latest portfolio. The assets under management have grown to Rs 120 crore and cash is 12 per cent of the total assets. The top three preferred sectors accounted for 48 per cent of the investment and top 10 stocks cornered 41 per cent of the portfolio.

The fund is more favourably inclined towards large-cap stocks with only 18 per cent of the assets being invested in mid- and small-cap stocks. The fund adopts buy-and-hold strategy with occasional profit-booking in stocks without churning the portfolio aggressively. Capital goods, construction and cement have been the preferred choices over the past year.

Exposure to BHEL, GMR Infrastructure and Gujarat State Petronet was increased over the quarter. The fund reduced holdings in Esab India.

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