The Hindu Business Line : Zurich India Equity: Hold

INVESTORS in Zurich India Equity Fund can stay invested. The fund is one of the few impressive performers over a long period. It has also done well across different time periods, indicating a high degree of consistency. Fresh investments can, however, be deferred for some time till a clear picture of the fund's investment approach under the auspices of HDFC Mutual Fund becomes clear.

The fund generally focusses on a small number of stocks and sectors. This has proved beneficial as the number of calls on buying and selling to be made also gets reduced. It had 18 stocks at the end of April 2003. In March and April, the following were the portfolio changes:

Stocks in: It is one of the few funds that has added Hindustan Lever to its portfolio. The other new entrant is Digital GlobalSoft.

Stocks out: Container Corporation of India and Bajaj Auto.

Enhanced exposures: Infosys, Larsen & Toubro, Ranbaxy, Grasim Industries, ITC, Bharat Electronics, Punjab National Bank, State Bank of India, Cummins and Canara Bank.

Pared exposures: Bank of Baroda, Hindustan Petroleum, Tata Steel, I-Flex Solutions, National Aluminium and Crompton Greaves.

Fund flows: Surich India Equity attracted sizeable inflows in March and April.

This is significant as it covers a period when there was information about the takeover of Zurich India Mutual Fund by HDFC Mutual Fund.

The net assets have risen by 6.5 per cent and NAV by 2.3 per cent. The net assets at the end of April were Rs 293 crore.

Fund facts: This fund was launched in January 1995. It offers entry at a minimum load of 2 per cent.

There is no exit load. The minimum amount is Rs 1,000. The manager is Mr Chandresh Nigam.

S. Vaidya Nathan

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