The Hindu Business Line : Reliance Vision

DIVERSIFIED funds with a bias for large-cap stocks may be better positioned to tackle volatile market and perform consistently. We take a look at how Reliance Vision, an open-ended equity fund with a diversified portfolio, managed its portfolio over October and November 2005.

Reliance Vision has an objective of achieving long-term capital growth by investing in equity and equity-related securities.

The fund has a number of large-cap stocks with a few mid-cap exposures to drive returns. As of November, the top three holdings — Tata Motors, Siemens and Reliance Industries — accounted for nearly 20 per cent of the net asset value.

Over the two-month period, the fund's sector-wise allocation has undergone a change.

While industrial capital goods continued to get the maximum allocation, the auto sector took the back seat and was replaced by banking. The exit of Ashok Leyland, TVS Motor and Apollo Tyres reduced the auto sector's weight.

The power sector was a new addition to Reliance Vision's holdings. Suzlon Energy was the sole representative with a weight of 5.2 per cent of assets.

The heavy allocation can be attributed to the stock's impressive performance since listing.

Cement found favour too, with an increase in exposure to Associated Cement Companies. Pharma lost weight with the exit of Nicholas Piramal. IT sector exposures underwent shuffling although the exposure level remained unchanged.

Satyam Computer Services moved out and paved way for Infosys Technologies.

Among capital goods stocks, holdings in Bharat Electronics, Sterlite Industries and Siemens were pruned while Larsen & Toubro made an entry into the portfolio.

Reliance Vision accumulated stocks of Century Textiles & Industries. The stock's weight in the fund's portfolio increased from 1.1 per cent in September to 3 per cent in November.

Gujarat State Fertilisers & Chemicals, Television Eighteen and State Bank of India were a few of the stocks in which the fund enhanced exposures.

Fund facts: Reliance Vision Fund was launched in 1995 and is managed by Mr Ashwani Kumar. As of November 2005 the fund had Rs 1153.6 crore of assets under management.

Vidya Bala

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