UTI Equity Fund reshuffles portfolioUTI's UTI Equity Fund registered a fall in it's NAV by 14 per cent in the last six months and the benchmark BSE 100 has dropped by 20 per cent. The total assets under management dropped by 10 per cent in the same period.
11 May 2008
UTI's UTI Equity Fund, formerly known as UTI Master Gain registered a fall in it's NAV by 14 per cent in the last six months and the benchmark BSE 100 has dropped by 20 per cent. The total assets under management dropped by 10 per cent in the same period.
The fund has a well-balanced diversified portfolio of 73 stocks. It has intentionally taken concentrated exposure to top ten stocks which accounts for 39 per cent of the total asset.
As a defensive strategy, the fund has allotted one-fifth of the assets to consumer goods. The fund has also dropped its exposure to banking, auto, cement, IT, media, power, telecom and textiles and has increased its exposure in asset allocation to capital goods and refineries.
The fund has also moved out of Andhra Bank and Kotak Mahindra Bank completely. The fund has selected stocks such as those of State Bank of India, Canara Bank, Oriental Bank of Commerce and Union Bank of India and LIC Housing Finance.
The funds holding in Mahindra and Mahindra, Tata Motors, Bajaj Holdings, Maruti Suzuki and Bharat Forge were retained without change.
In the cement sector, holdings in India Cements and accumulated shares of ACC were spruced. It pulled back in frontline IT stocks such as Infosys Technologies, Satyam Computer Services and Tata Consultancy Services.
The stocks to move out of the portfolio were Suzlon Energy, Tata Power and NTPC. For consumer goods, the fund pruned its exposure to Nestle and Glaxo Smithkline Consumer Products and instead added Hindustan Unilever afresh.