The Hindu Business Line : DSP Merrill Equity: Pare exposure

INVESTORS in DSP Merrill Lynch Equity Fund can contemplate paring exposures to take advantage of the rise of over 50 per cent in the NAV over the past year.

The fund's overall track record has not been impressive when compared to quite a few other diversified funds, which have been around since 1997. However, the fund has outperformed the broad market indices. In this backdrop, investors can contemplate paring exposures in the fund.

Stocks in: Bombay Dyeing, Tata Power, Canara Bank, Vysya Bank, Pfizer and Asian Paints are the new entrants into the portfolio.

Enhanced exposures: Jupiter Bio-Sciences, Bharat Earth Movers, Crompton Greaves, SBI, Pantaloon Retail, Tata Motors, Hindustan Petroleum (HPCL), Oriental Bank of Commerce, Larsen and Toubro, Punjab Tractors, GlaxoSmithKline Pharmaceuticals, Reliance Industries, Bharat Forge, Hindustan Lever, ITC, BHEL, Siemens, Wipro, Dr Reddy's Labs and Wipro.

Stocks out: Karur Vysya Bank, Grasim Industries, ABB and Ranbaxy Labs were sold out.

Pared exposures: Holdings in Indian Oil, ING Vysya, Thermax, Gujarat Ambuja Cements, Sesa Goa, Hero Honda, Tata Power, Maruti Udyog, GAIL and Bongaigaon Refineries.

Top ten holdings: SBI, Grasim, Karur Vysya Bank, HPCL, ITC, Ranbaxy Labs, Infosys, ING Vysya Bank, Larsen & Toubro and Tata Motors.

Sector changes: Banks, pharmaceuticals, oil and gas, IT and automobiles form the top five sector holdings.

Fund flows: The fund has faced outflows in June and July. The net assets increased just 5.5 per cent. During this period, the NAV has moved up by 17.6 per cent, indicating redemption pressure.

The net assets at end of July were Rs 22.3 crore. About 96.9 per cent were in equities and the rest in cash and cash equivalents.

: The fund was launched in April 1997. The minimum amount is Rs 1,000. There is an entry load of 2 per cent of the NAV. There is no exit load. The manager is Mr Anup Maheshwari.

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