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Kothari Pioneer Taxshield '95

Dhirendra Kumar

Kothari Pioneer Taxshield '95, is a close-ended equity linked tax saving scheme. The fund is currently open for repurchase at net asset value (NAV). The fund has till date given an annualised return of 32 per cent against 8.3 per cent by the Sensex.

As on March 16, 2000, besides the growth sectors, the fund also had stakes in the sectors of oil, banking and auto. During calendar 1999, the fund returned 267 per cent. During the one-year and quarter ending March 2000, the fund gained 81 per cent and 9.4 per cent respectively. For its quality portfolio, this fund will give favourable returns. Though, the current sectoral allocation of the fund is not available, the volatility of the fund shows that the fund has significant exposure to the software sector. During the recent post-Budget downslide, the fund lost 34 per cent while the Sensex fell by 16 per cent.

The fund initially mobilised Rs 90 crore. Launched at a time when the markets were in a strong bear grip, the fund with a predominant cyclical portfolio found the going really tough. Despite active management, the fund's NAV slid to a low of Rs 6.55 in December 1996.

The restructuring and consolidation of the fund in favour of the growth sectors of software, pharma and FMCG, in the latter half of 1997, helped it bounce back and improve its performance significantly. The fund started to outperform the Sensex from September 1997 onwards and by March 1998 the growth sectors accounted for 33 per cent of its portfolio.

Fund Basics
Objective	Size (Rs cr)	NAV (Rs) 14/4/2000	Repurchase Price	Sale Price (Rs)	Total Returns
Tax planning	170	38.07	38.07	—	31.98%
Benchmark Comparisons (%)					31/3/2000
	1M	3M	6M	1Yr	3Yr
Fund	-4.02	9.36	83.68	176.71	81.10
Sensex	-8.18	-0.09	4.97	33.73	14.17
Nat. Index	-11.88	10.58	31.12	75.74	25.63
Obj.Avg.	-10.88	7.96	38.20	75.32	26.47
Top holdings (16/3/2000)
Bharat Petroleum
Britannia
Cipla
Fulford
HPCL
Hero Honda
ICICI
ITC
ICICI Bank
Infosys
Kirloskar Cummins
MICO
Mahindra & Mahindra
Mastek
Punjab Tractors
Pfizer
Satyam Computer
Sierra Optima
SmithKline Consumer
Zee

Source: Value Research

Mutual Funds

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