K-30: Hold

Recommendation: Hold

S. Vaidya Nathan

INVESTORS in the K-30 scheme of Kotak Mahindra Mutual Fund can stay invested.

As a consequence of its mandate to invest in 30 stocks, the fund has largely stuck to frontline and large cap stocks.

In a market that is going through a tough phase, it may better to be invested in stocks with such a profile. The overall NAV may perk up if there is a broad-based rally. The fund, though restricted to 30 stocks, has been altering stock exposures at regular intervals.

Incoming stocks: In April 2001, the fund has added one new stock to the portfolio namely Reliance Petroleum (2.1 lakh shares).

Outgoing stocks: The fund has completely cut its exposures to two stocks _ E-Serve and Bluestar.

Enhanced exposures: The fund has enhanced its exposures in Knoll Pharmaceuticals, Reliance Industries and Videsh Sanchar Nigam Ltd (VSNL).

Pared exposures: Exposures in the following stocks have been partially cut: Cipla, Ranbaxy Laboratories, Hindustan Lever, ITC, Infosys (500 shares), Satyam Computer, Polaris Software, SSi, HDFC Bank, Larsen and Toubro, ACC, India Cements, MTNL, Mahindra and Mahindra, BPCL Hindalco (912 shares) and Zee Telefilms. Exposures in LG Balakrishna Bros have also been cut.

Top 10 holdings: The top 10 exposures of the fund are the stocks of Hindustan Lever, Reliance Industries, HDFC Bank, Infosys, Pfizer, Cipla, ITC, Mahindra and MahinDra, Reliance Petroleum and Larsen and Toubro.

Sectoral exposures: The fund's top three sectoral holdings are IT (12.4 per cent of assets), fast moving consumer goods (15.09 per cent) and pharmaceuticals (15.42 per cent). The fund has close to 14 per cent of net assets in cash/cash equivalents.

Fund facts: K-30 is an open-end growth fund launched in December 1998. It offers entry at a load of 1.75 per cent on NAV and there is no exit load. The minimum investment is Rs 5,000. There is a Dividend Payout Option and a Dividend Re-Investment Option. The fund declared two dividends of 20 per cent each in December 1999 and October 2000. The manager is Mr S. N. Rajan.

This column tracks recent changes in the top exposures of various mutual funds. The latest available portfolio is compared with that of the preceding month/quarter.