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Aarati Krishnan

INVESTORS can retain their present exposures in Sundaram Taxsaver. Over the past year, the fund has generated returns of around 94 per cent, in line with returns generated by other top performing diversified funds. The fund also has a satisfactory three-year track record.

For those wanting to make fresh investments, it may be better to hold off such investments for now and time them to a decline in market levels.

Being a tax-planning fund, this fund carries a three-year lock-in period. This reduces the investors' flexibility to exit the fund within a shorter time frame, in the event of poor performance.

During the month of November 2003, the fund has significantly pruned the number of stocks held in the portfolio, by completely liquidating several of its holdings and booking profits on some others.

The fund appears to have parked the proceeds in cash, leading to a high cash position of 20 per cent by end of November 2003.

Stocks in: The fund has added EIH, KPIT Systems, Geometric Software, Greaves and Taj GVK Hotels to its portfolio in November.

Stocks out: Matrix Labs, IPCL, Tata Motors, Subex Systems, Bharat Forge, Tata Steel, ONGC, Bank of Baroda, Canara Bank, Nalco, Pricol, HPCL, Rane Brake Linings, ITC, and Balrampur Chini Mills exited the fund's portfolio.

The bulk of these were mid-cap exposures which had run up sharply over the past month.

Exposures enhanced: The fund added to positions in GlaxoSmithkline Pharma, Polyplex Corporation, SAIL, MICO, Tata Coffee, Satyam Computers, GAIL, Bajaj Auto, ACC, Hindustan Lever during the month.

Exposures pared: The fund pared exposures to Reliance, SBI, ABB, IOC, BPCL, Hindalco, Grasim and BHEL during the month.

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