Taurus Mutual Plans Portfolio Recast In Three Equity Schemes

New Delhi, Sept 28 | Updated: Sep 29 2004, 05:30am hrs
The Delhi-based Taurus Mutual Fund is planning to do a major portfolio restructuring in its three equity funds, which have a combined corpus of Rs 132 crore.

The three open-ended equity funds include Taurus Starshare (current corpus Rs 82 crore), Taurus Discovery Stock (Rs 18 crore) and Bonanza Exclusive Growth (32 crore).

The schemes, which have an investor base of two lakh, will exit from illiquid stocks and enter into liquid stocks, Taurus MF chief executive RK Gupta told FE.

Our effort is to improve the performance of equity schemes especially when income funds are hardly yielding returns. Once the performance of these schemes improves, we may also look at the option of launching new schemes, Mr Gupta reiterated.

Equity fund portfolios would be restructured with a focus on stocks from top performing sectors on the bourses. The reshuffling would be done with a top-down approach, the head of the fund said.

Stock markets are now witnessing sectoral-led rallies. So, its important to do a sectoral balancing to generate returns. The fund manager, for instance, would take a view on 5-6 sectors with each sector having different weightage in the portfolio. He would review the performance of each sector every month and vary weightage of each sector, if necessary, he said.

Taurus MFs flagship scheme, Starshare has given around 43% return during the one-year period ended August 31, 2004, marginally outperforming the sectoral average of 41%.