Tuesday, April 21, 2009

DBS Chola Mutual Fund The Sensex Above Mainly Of The Occasion Period - April 21, 2009

Background: DBS Cholamandalam AMC Limited is an assets management company, which offers mutual funds to retail and institutional investors. The company was set up in 1996, as a joint ventura with Cazenove Investment management of the UK. In 2001, the Muragappa Group acquired Cazenove's stake in the company; today CAMC is a subsidiary of Cholamandalam Investment & Finance Company Limited (CIFCL). CAMC is known for its prudent philosophy in fund management. DBS Chola Triple Ace, India's first AAA-rated mutual fund scheme, has not only retained its rating since inception, but also has a consistent track record of dividend payments. Based in Mumbai, the fund house manages Rs 1023.49 crore of assets as on March 2009.

DBS Chola Growth Fund (G) an open-ended equity scheme launched in January 2006. The objective of the scheme is to generate long term capital appreciation income through investments in equity and equity related instruments; the secondary objective is to generate some current income and distribute dividend. The minimum investment amount is Rs 5000 and in multiples of Rs 1000 thereafter. The unit NAV of the scheme was Rs 22.41 as on 20 April 2009.

Portfolio: The total net assets of the scheme increased by Rs 0.82 crore to Rs 10.39 crore in March 2009.

DBS Chola Growth Fund (G) took fresh exposure to eight stocks in March 2009. The scheme has purchased 12963 units (2.97%) of Hindustan Unilever, 4005 units (1.48%) of Mahindra & Mahindra, 37055 units (1.41%) of Indian Hotels, 3405 units (1.27%) of Indian Oil Corporation.

The scheme exited completely from Punjab National Bank by selling 3502 units (1.23%), Aditya Birla Nuvo by selling 2497 units (1.09%) and Tata Chemicals by selling 4997 units (0.65%) in March 2009.

Sector -wise, the scheme took fresh exposure in Personal Care – Multinational at 2.97%, Automobiles – Tractors at 1.48%, Hotels at 1.41% and Packaging at 1.15% among others in March 2009.

Sector-wise, the scheme exited completely from Textiles – Manmade at 1.09% in March 2009.

The scheme had highest exposure to Reliance Industries with 4654 units (6.82% of portfolio size) followed by Bharti Airtel with 6999 units (4.22%), Bharat Heavy Electricals with 2806 units (4.06%) and NTPC with 20960 units (3.63%) among others in March 2009.

It reduced its exposure from Tata Consultancy Services by selling 3240 units to 998 units (by 1.61%), Tata Power Company by selling 1246 units to 1255 units (0.98%), Power Grid Corporation of India by selling 5064 units to 10998 units (0.61%) and GAIL (India) by selling 2979 units to 6534 units (0.48%) among others in March 2009.

Sector-wise, the scheme had highest exposure to Power Generation and Supply at 10.51% (from 11.24% in February 2009), followed by Telecommunications - Service Provider at 9.61% (9.01%), Banks - Private Sector at 8.11% (8.95%) and Refineries at 8.09% (6.48%) among others in March 2009.

Sector wise, the scheme had reduced exposure from Computers - Software – Large to 1.50% (by 1.68%), Banks - Public Sector to 3.08% (by 1.36%), Banks - Private Sector to 8.11% (by 0.84%) and Power Generation and Supply to 10.51% (by 0.73%) among others in March 2009.

Performance: The scheme underperformed the Sensex over most of the time periods.

Over three-month period ended as on 20 April 2009, the scheme posted returns of 19.27% underperforming the Sensex that posted returns of 20.65%. Over 6 month period, the scheme's returns surged to 10.34% outperforming the Sensex that rose 7.40%.

The returns of the scheme over one year period fell 37.16% underperforming the Sensex that plunged by 33.38%.

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