The Hindu Business Line : Chola Multi-Cap

LARGE-CAP stocks have survived the recent decline in stock values much better than the mid- and small-cap stocks. In the scenario, the stance that the various multi-cap funds have adopted, of retaining a significant large-cap exposure, has stood them in good stead. Chola Multi-Cap Fund, one of the first multi-cap products to be launched, had a 50 per cent allocation to large-cap stocks by the end of September 2005.

Chola Multi-Cap is an open-ended equity scheme which invests in equity and equity-related instruments across all ranges of market capitalisation. The fund has about 35 stocks in its portfolio and about 50 per cent of its assets are in large-cap stocks.

Among the sectoral holdings, software, industrial capital goods and consumer non-durables accounted for about 40 per cent of the portfolio value.

During the month the fund increased its exposures in a number of stocks and also made fresh entry into a few. The scheme increased its exposure in the textile sector through fresh entry into Alok Industries. Nicholas Piramal also figured in the month's portfolio and added strength to the thinly represented pharma and healthcare sector. Consumer goods, absent in the fund's August portfolio, gained entry through Dabur India. IDBI and Voltas also found favour during the month. Chola Multi-Cap exited Maruti Udyog.

Holdings in ITC, Kale Consultants and United Phosphorus were increased substantially. Exposure to the top three holdings in the portfolio — Reliance Industries, Satyam Computers and Associated Cement — remained largely unchanged. Allahabad Bank continued as the sole representative from the banking sector. The fund cuts its exposure to Infotech Enterprises and Balakrishna Industries and the stocks now form 5.3 per cent of the portfolio.

Fund facts: Chola Multi-Cap Fund was launched in January 2005 and had Rs 73 crore of assets under management as of September 2005. The scheme is benchmarked to S&P CNX 500. Mr Tridib Pathak is the fund manager.

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