The Hindu Business Line : T.I.G.E.R. Fund

THEME-based funds carry a higher risk profile than diversified funds due to their concentrated approach. However, early identification and investment into sectors that carry more potential than others may yield returns commensurate to the risks taken.

DSP Merrill Lynch India T.I.G.E.R Fund (The Infrastructure Growth and Economic Reforms Fund) is an open-ended theme-based fund that has an objective of capital appreciation, through investment in the stocks of companies that would benefit from the Government's economic policies and thrust on infrastructure. We take a look at how the fund managed its portfolio over the period September to December 2005.

DSP ML T.I.G.E.R had a portfolio of about 55 stocks as of December 2005. Capital goods, banks and petroleum products accounted for 45 per cent of the total net assets. The allocation to construction sector reduced over the quarter. The stocks of IVRCL Infrastructures & Projects, Nagarjuna Construction and Jaiprakash Associates were partially sold.

Among stocks with high allocation, Reliance Industries and Larsen & Toubro were retained in the top five spots while exposures to Bharti Shipyard and Indian Rayon were pruned. ONGC and Thermax found favour instead.

Gujarat Ambuja Cements made a fresh entry to the cement portfolio while holdings in Associated Cement Company was trimmed.

The banking and finance services segment found increased allocation. Syndicate Bank was added to the banking portfolio, while ICICI Bank and Oriental Bank of Commerce saw increased weight. HDFC appeared to have attracted interest as the stock's percentage in net assets rose from 1.6 per cent to 2.7 per cent over the above period.

The media portfolio also witnessed some churning. TV Today Network and Zee Telefilms made a complete exit while Deccan Chronicle Holdings and Television Eighteen India were accumulated.

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