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Money > Business Headlines > Report April 5, 2001 |
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UTI reduces exposure in tech stocks to 19 per centBS Economy Bureau Unit Trust of India, the largest mutual fund in the country, has reduced its exposure in technology stocks from 25 per cent to 19 per cent in the backdrop of a sharp erosion in the net asset value of its flagship Unit Scheme-64 and ULIP. UTI chairman PS Subramanyam said in New Delhi on Wednesday that the decision has been taken in the wake of all top-rung technology scrips taking a severe thrashing both in the domestic and global markets. He, however, did not rule out further trimming of the fund's exposure to the technology sector. "We follow a proactive investment strategy and analyse movements on a day-to-day basis. Depending on the fund managers' opinion, the fund's exposure can go down further," Subramanyam said. The entry point of UTI in ICE companies like Himachal Futuristic Communications Ltd and Zee Telefilms Ltd where the institution has significant exposure was considerably low, he said. "We took positions in several of these companies at very low levels," he added. For example, in HFCL where the institution holds about 11 per cent equity, the shares were bought during 1991-92 at about Rs 30 per share. "Even after the crash, we have registered book profits of about Rs 9.45 billion," Subramanyam said. Referring to UTI's alleged over-exposure in the scrips that were part of Ketan Parekh's portfolio, Subramanyam termed them "completely baseless". He refused to comment on US-64 dividends, which are due to be paid in June this year. The UTI chairman said that losses on account of the stock market crash are temporary and the institution will be able to cover them once the market picks up. ALSO READ:
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