The Hindu Business Line : UTI Master Value Plan: Hold

WITH a consistent performance track record over the past five years and impressive returns in the past year, the UTI's Master Value Plan has been a key beneficiary of the rally in mid-cap stocks over the past year. The distinguishing feature of this fund is that it has capitalised on the mid-cap rally without a heavy exposure to banking stocks.

The fund is one of just two equity funds dedicated to mid-cap stocks, which have a reasonably long performance track record. Investors can stay with the fund in light of good performance.

However, given the sharp appreciation in the universe of mid-cap stocks over the past year, investors who enter a mid-cap fund at this point may be taking on a fairly high degree of risk. Fresh investments can, therefore, be put off until there is a correction in broad market levels.

Traditionally, the Master Value Fund has had a lower portfolio turnover ratio than Franklin India Prima Fund, which indicates less frequent churning of its portfolio. But, of late, the fund appears to be managing its holdings quite actively. In May 2003, the fund booked profits in a range of its holdings. The following were the key changes to the portfolio in that month:

Stocks added: The fund added RCF, Ballarpur Industries, Eicher Motors and Rain Calcining.

Stocks sold: The fund completely liquidated its holdings in Moser Baer.

Exposures enhanced: The fund added to holdings in GAIL, ITC, Abbott Labs, Bank of Baroda, Indian Rayon, IPCL, Navneet Publications, GE Shipping.

Exposures pared: Exposure was trimmed to ONGC, Alfa Laval., Marico, Ucal Fuel Systems, Arvind Mills, IOC, Goodlass Nerolac Paints, LIC Housing Finance, Eveready Industries, Elbee Services and Henkel SPIC.

The list of stocks in which the fund pared exposures is much longer than the one in which the fund added to its positions.

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