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Canpep '95

Dhirendra Kumar

Canpep '95 is a close-ended tax saving equity fund due for redemption in March 2005. Apart from being listed in the market, the fund provides repurchase at a 5 per cent discount to the previous Friday's net asset value.

Canpep '95 has given an annualised return of 6.77 per cent since its launch against a 9 per cent return on the BSE Sensex. Cyclical stocks constituted 71 per cent of the portfolio in March 1997 but in March 1999, it was reduced to 40 per cent while infotech and FMCG were augmented to 15 per cent and 23 per cent. As on September 1999, the fund, without going overboard on any single sector, is diversified across FMCG (28%), infotech (24%), pharma (15%), auto (9%) and cyclicals (24%).

The realignment and the rising markets have given the fund the much-needed fillip to gain 76.5 per cent during calendar 1999. The fund has gained 79.5 per cent and 19 per cent over one year and quarter ending February 2000 respectively. Canpep '95 is a well-diversified fund and has quality stocks in its portfolio. The change in the market sentiment in favour of the underlying sectors of the fund will improve returns.

Launched at the time when the markets had entered the bear phase, the fund really struggled to perform. Languishing below par for over four years, the fund could breach the coveted NAV of Rs 10 only in July 1999. On the back of a gradual restructuring initiated in favour of the growth sectors of infotech and FMCG, Canpep '95 started outperforming the Sensex from 1998.

Fund Basics
Objective	Size (Rs cr)	NAV (Rs) 23/3/2000	Market Price	Discount (%)	Total Returns
Tax planning	34.66	12.96	11.85	-8.60	6.66%
Benchmark Comparisons (%)					29/2/2000
	1M	3M	6M	1Yr	3Yr
Fund	7.22	18.86	17.51	79.53	24.80
Sensex	2.08	17.41	11.83	60.22	14.26
Nat. Index	11.52	46.89	50.80	118.54	27.62
Obj.Avg.	12.26	44.09	62.46	129.77	28.55
Top holdings (30/9/1999)					Net assets (%)
Infosys					10.41
Hindustan Lever					10.11
Ranbaxy					7.65
Hindalco					4.43
ITC					4.34
BHEL					4.25
Procter & Gamble					3.81
ACC					3.78
Larsen & Toubro					3.41
HPCL					3.16

Mutual Funds

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