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Unit Scheme '95

Dhirendra Kumar

Unit Scheme '95 is an open-end balanced fund with a debt and equity component ranging between 40%-60% each. Launched in March 1995, the fund was initially designed to seek income and capital appreciation for large investors; both corporates and high networth individuals. However, effective March 2000 the fund has reduced the minimum investment from rupees ten lakh to ten thousand. The fund has been consistent with its dividend every year, the most recent being 15% dividend in March 2000. Entry into the fund is at NAV, exit carries a 2% exit load.

The fund has given an annualised return of 27.27 per cent since its launch and has been an above average performer in its category. The fund was initially into large-cap cyclical stocks. The debt component of the fund helped it weather the bear phases, but the intermittent rising equity markets did not see the fund perform as well. In 1999, the fund shifted its focus towards the growth stocks and started to outperform the BSE Sensex from March 1999.

The fund consistently returned positive figures during the calendar year 1999, but the maximum gains have been for the last quarter ending March 2000. By December 1999, the fund was heavily into frontline technology stocks accounting for 50 per cent of the portfolio. However, by March the fund reduced its exposure to 37.5 per cent. Today, fund has diversified into sectors of Banks (14%), Petrochemicals (11%), Commodities (9%) and Auto ancillaries (6%). The fund for the last quarter and one year ending March 2000, ranked #1and #3 respectively among 18 and 13 of its category for the corresponding time periods. In the recent downturn, the fund lost a mere 4 per cent as against a 17 per cent fall in the sensex.

The fund is attractive for being a truly balanced among available balanced fund options and its well diversified equity portfolio. With the fund's flexibility to invest up to 60 per cent in equities, the dividends paid by the fund will be exempt from the dividend tax. However, to be on safe side and to avoid tax incidence, only the growth plan should be considered.

Fund Basics
Objective	Size (Rs cr)	NAV: 28/04/2000	Exit Price	Entry Price	Total Returns
Balanced	177.58	193.47	193.47	189.6	27.27%
Benchmark Comparisons (%)					31/3/2000
	1M	3M	6M	1Yr	3Yr
Fund	2.92	40.58	57.00	103.69	38.92
BSE30/IBex	-6.18	1.11	6.01	28.45	14.70
BSE100/IBex	-7.67	7.95	21.03	45.91	21.39
Obj. Avg.	-5.21	6.94	29.57	58.94	31.11
Top holdings (29/2/2000)			Value (Rs cr)		% of Total assets
Information Technologies			31.93		18.27
Infosys Technologies			24.06		13.77
Reliance Industries			11.57		6.62
IDBI			9.02		5.16
ICICI			8.04		4.60
Pentamedia Graphics			7.04		4.03
Reliance Petroleum			6.85		3.92
HDFC			5.57		3.19
Satyam Computer			5.45		3.12
Torrent Pharmaceuticals			5.40		3.09
Indian Seamless Steels & Alloys			5.05		2.89
Hindustan Lever			4.61		2.64
Apollo Tyres			4.12		2.36
Usha Ispat Ltd.			4.12		2.36

Source: Value Research

Mutual Funds

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