The Hindu Business Line : Taurus Starshare and UTI Infrastructure

The equity market is moving in highly volatile phases since the news on P-notes started to hit the headlines. The sectors and stocks that surged sharply in the past few months underwent huge intra-day swings. Compared to the previous weeks, a few mutual fund schemes moved up and a few fell on the performance charts, based on stock-specific exposures. Here is a look the way two schemes — Taurus Starshare and UTI Infrastructure — reshuffled their portfolios over the past year.

UTI Infrastructure

Over the past year industrial manufacturing and construction enjoyed the maximum asset allocation. However, over the past month, the exposure to construction stocks marginally reduced. The fund has very compact portfolio, however, and the top 10 stocks account for 45 per cent of the assets. Stock-specific exposure is restricted to 7 per cent of the assets. The top three sectors — industrial manufacturing, energy and other diversified stocks — accounted for 63 per cent of the assets. In the past year the assets have grown by 165 per cent, including an 87 per cent increase in NAV. This fund adopts a buy-and-hold strategy and invests predominantly in large-cap stocks.

Taurus Starshare

The fund is a diversified, open-ended scheme. In general, diversified funds restrict single-stock exposures to less than 10 per cent of assets, but Taurus Starshare’s investment pattern appears more theme-based. The fund has 49 stocks in its latest portfolio, of which the top three — JP Associates, Crompton Greaves and Aditya Birla Nuvo — cornered 50 per cent of the assets.

The fund prefers to adopt a buy-and-hold strategy. However, in the top three stocks, it prefers to book profits when the opportunities arise. Over the year the assets under management grew 27 per cent, but the NAV has grown by 48 per cent, implying that despite the appreciation in NAV, there was some amount of profit booking in the scheme.

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