Tata Growth Fund (G) Underperforms The Sensex Over Most Of The Time Periods

Background: Tata Assets Management Ltd. is a part of the Tata group - one of India's largest and most respected industrial groups. The Tata Group is one of India's best-known conglomerates in the private sector with a turnover of around US $ 14.25 billion. The fund manages assets worth Rs.20198.55 crore at end of October 2007.

Tata Growth Fund (G) an open-ended equity-diversified scheme launched in June 1994. The objective of the scheme is to provide reasonable and regular income along with possible capital appreciation to its unit holder. The minimum investment amount is Rs.5000 and in multiples of Re.1 thereafter. The unit NAV of the scheme was Rs 45.25 as on 6 November 2007

Portfolio: The total net assets of the scheme increased by Rs.4.87 crore to Rs.126.21 crore in September 2007.

Tata Growth Fund (G) took fresh exposure to two stocks in September 2007. The scheme has purchased 21,000 units (2.41%) of Suzlon Energy and 30,000 units (2.11%) of Asian Electronics in September 2007.

The scheme completely exited from Infosys Technologies by selling 14,441 units (2.21%), Megasoft by selling 1.20 lakh units (1.16%), Sun TV Network by selling 41,708 units (1.15%), Aurobindo Pharma by selling 11,820 units (0.59%) and Automotive Axles by selling 8,307 units (0.33%) among others in September 2007.

Sector-wise, the scheme took no fresh exposure in September 2007.

Sector-wise the scheme completely exited from Computers - Software - Large at 2.21% in September 2007.

The scheme had highest exposure to United Spirits with 35,994 units (4.97% of portfolio size) followed by Bharti Airtel with 62,664 units (4.67%), Larsen & Toubro with 20,344 units (4.53%) and Tata Power Company with 54,050 units (3.66%)among others in September 2007.

It reduced its exposure Ipca Laboratories by selling 5,000 units to 26,811 units (by 0.40%), Zenith Infotech by selling 1.00 unit to 43,602 units (0.22%) and Hikal by selling 1.00 unit to 35,499 units (0.08%) among others in September 2007.

Sector-wise, the scheme had highest exposure to Computers - Software - Medium / Small at 9.03% (from 9.86% in August 2007), followed by Electric Equipment at 7.99% (3.34%) and Entertainment / Electronic Media Software at 5.70% (6.62%) among others in September 2007.

Sector wise, the scheme had reduced exposure to Entertainment / Electronic Media Software to 5.70% (by 0.92%), Computers - Software - Medium / Small to 9.03% (by 0.83%) and Pharmaceuticals - Indian - Bulk Drugs & Formulation to 4.84% (by 0.77%), among others in September 2007.

Performance: The scheme under performed the category average over most of the time periods. It under performed the Sensex over most of the time periods.

Over three-month period ended as on 6 November 2007, the scheme posted 23.81% returns underperforming the category average of 24.63%. It underperformed the Sensex that has posted 31.46% returns during the same period.