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BIRLA Dividend Yield Plus, the recently launched equity fund, has invested up to 65 per cent of its net assets at the end of March 2003. The fund was reopened for investment at the end of February 2003. It has attracted fresh inflows of about Rs 6.6 crore in March.

For a fund that was launched only recently, its assets under management are sizable, at about Rs 47 crore. Investors in the fund, however, can continue to stay with it.

Sectoral exposures: In terms of sectors, the fund is largely diversified, with no sector accounting for more than 10 per cent of net assets.

The top sectors are banks, commodity chemicals, oil and gas - refining and marketing, marine products, and apparel and accessories. These sectors account for about 32 per cent of net assets.

Stock exposures: None of the stocks account for more than 5 per cent of the net assets. The fund is fairly well diversified with 29 stocks in the portfolio at the end of March 2003.

The top ten picks are Great Eastern Shipping, Raymond, Neyveli Lignite, LIC Housing Finance, Tata Chemicals, Century Enka, BPCL, Bank of Baroda, Gas Authority and Bank of India. These account for 37.4 per cent of net assets.

The fund has a fair sprinkling of public sector stocks. PSU stocks accounted for about 23 per cent of net assets. However, barring BPCL and NALCO, none of them are linked to the disinvestment theme. The fund is also not completely stuffed with stocks with dividend yields of more than 5 per cent.

Stocks that offer a dividend yield of less than 5 per cent accounted for about 20 per cent of net assets. The fund also held investments in Hindustan Lever — possibly because of the pending bonus debenture offer.

The fund's portfolio is likely to be relatively less liquid than a normal diversified equity fund. It remains to be seen if cash will consequently account for a larger portion of net assets.

Suresh Krishnamurthy

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