Blame the fickle equities market for this and more specifically the technology stocks which have let down both fund managers and investors and are quoting much below the levels at which investments were made in it in the first place.

K-Tech, whose investments are primarily in technology stocks, has been the most affected by the reversal in these scrips, having given a negative return of 16.93 per cent as on June 30, 2000, according to the fund's annual report. The fund manager for the scheme, SN Rajan has explained that investments in the scheme started in a falling market, which led to the "large erosion in the NAV." The scheme at the end of the first quarter of the current fiscal had a cash position of 20 per cent, "and expect to be fully invested to achieve 90 per cent exposure in equities".

The investment in technology stocks is more than 58 per cent of the total portfolio, out of which Infosys has the major share at 10.46 per cent. Media stocks contribute 7.45 per cent, net receivables (liquid instruments including call market) 22.13 per cent while the remaining investments are scattered in finance, pharmaceuticals and telecom sectors.

There are four scrips in the scheme's portfolio who, though not from the technology sector, are expected to have their current and future valuations powered by "technology-led initiatives."

K-MNC, on the other hand, has been in positive territory, probably due to the fact that stocks of multinational companies did not come in for much battering at the bourses. Returns since inception have been of the order of 4.6 per cent. Exposure to the FMCG sector as on June 30 this year, was 24.58 per cent and "we intend to limit exposure to the Infotech sector to 10 per cent," according to the fund manager.

The cash component in the scheme was at 31.25 per cent as at the end of June, which the scheme intends to bring down to 10 per cent. The fund has also reduced its exposure to the Infotech sector of its K-30 scheme from 52.73 per cent at the beginning of the first quarter to 44 per cent at the end of it. It has added Reliance Industries to its portfolio and has exited from Punjab Tractors and Hughes Software during the quarter, making the portfolio much more diversified.