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Zurich India Top 200

Dhirendra Kumar

Zurich India Top 200 is a diversified equity fund, which focus on companies drawn from BSE 200 Index as well as 200 largest capitalised companies in India. While entry in to the fund is at a load of 1.75 per cent, exit is on a no load basis. The fund paid a total of four dividends - 25 per cent each in January and March 2000 and 21 per cent each in August 2000 and February 2001.

By focusing on the constituents of BSE 200 and 200 largest capitalised companies, the fund has voted for an investment universe of bluechip, large cap and liquid stocks. Further, since the fund consistently tries to beat this Index, stock weightings are controlled, based on weightings in the index. With this background, the fund has stayed largely diversified with individual stock exposure staying within limits of prudence.

FUND BASICS   Objective    Size (Cr)    NAV: 7/04/2001    Exit Price    Entry Price    Total Return   Growth   31.83   14.09   14.09   14.34   12.48%

Also, in line with the changes in its chosen index, the fund has actively rotated across sectors. While pitching itself in favour of growth stocks of consumer, pharma and technology the fund was overweight on the first two sectors in 1999. This saw the fund post a return of 85.17 per cent, in line with the BSE 200.

However, beginning 2000 the fund held a restrained focus on technology stocks – apportioning a third of its corpus to these stocks, even while continuing with its growth pitch. Even while the diversification saw the fund post only nominal gains in 1999, the fund held its ground in the tumultuous markets of 2000. In the tech-led market crash, the fund lost 25.47 per cent in line with its benchmark index. In the last six months, the portfolio complexion has changed in favour of pharma, consumer and economy counters at the expense of infotech stocks.

BENCHMARK COMPARISONS (%) (04/05/2001)      1M    3M    6M    1Yr    3Yr   Fund   2.94   -11.72   -2.23   -13.25   4.26   BSE 200   2.78   -22.33   -13.63   -24.63   -3.54   Nifty Tot. Ret.   -0.41   -17.90   -8.84   -17.75   -0.37   Obj. Avg.   1.22   -22.04   -17.03   -25.70   3.68

With a return since launch of 12.48 per cent, Zurich India Top 200 has outperformed its index, while still remaining an average performer in its category. With relatively insipid returns, the fund has already lost a large part of its investment mandate when it witnessed heavy redemption in September 2000. Even though Top 200 carries a lower risk quotient with a quality conscious diversified portfolio, its active management is yet to see it outperform its category.

Top Holdings (30/04/2001)      Value (Cr)    % of Assets   Cipla   1.95   6.13   Tata Power   1.69   5.31   Ashok Leyland   1.65   5.17   Ingersoll-Rand (India)   1.53   4.82   Bharat Heavy Electricals   1.42   4.45   Tata Tea   1.39   4.36   Asian Paints (India)   1.31   4.10   MTNL   1.27   3.99   Hindustan Aliuminium Corpn   1.22   3.82   Gujarat Ambuja Cements   1.20   3.77   Punjab Tractors   1.20   3.76   P&G Hygiene & Health Care   1.15   3.62   TISCO   1.14   3.59   TELCO   1.09   3.44   Asea Brown Boveri   1.01   3.18

Source: Value Research

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