Books
Columnists
Indian Tax
Insurance
Interview
Mutual Funds
NRI Tax
Personal Finance
Personal Banking
Real Estate
Stocks

Kothari Pioneer Taxshield '96

Dhirendra Kumar

Kothari Pioneer Taxshield '96 is a close-ended equity-linked tax-saving scheme due for redemption in March 2006. The fund is currently open for repurchase at net asset value (NAV). KP Taxshield '96 has given an annualised return of 31 per cent since its launch against 9.06 per cent by the Sensex.

Though the fund has always been diversified across cyclicals and growth sectors, the maximum gain of 173 per cent during calendar 1999, and a 5 per cent fall in the last quarter ending March 2000, suggests a tilt in favour of the infotech sector. Given the fund's quality portfolio, it will give favourable returns but with high volatility.

Faced with a bear market subsequent to its launch, the fund successfully managed to guard its assets and started to consistently outperform the Sensex after August 1997. The fund initially started off with a portfolio comprising of a diversified bundle of large and small cap stocks from the cyclical sector.

However by March 1998, the fund had pared its holdings in cyclicals to accommodate scrips from infotech and pharma. Cyclicals, infotech and pharma accounted for 37, 21 and 10 per cent respectively of the top 75 per cent of the portfolio in March 1998. Over time, the fund also shifted its preference towards large cap stocks.

Fund Basics
Objective	Size (Rs cr)	NAV (Rs) 26/4/2000	Repurchase Price	Sale Price (Rs)	Total Returns
Tax planning	52.85	28.18	28.18	—	30.95%
Benchmark Comparisons (%)					31/3/2000
	1M	3M	6M	1Yr	3Yr
Fund	-6.83	-4.77	41.44	87.63	54.51
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
Crisil
Crest Communication
Fulford
German Remedies
HDFC
HPCL
Hoechst Marion
MRF
Mastek
NIIT
Nalco
PSI Data
Ramco
Ramco Systems
SKF Bearings
Satyam Computer
Siemens
Sundaram Clayton
TVS Suzuki

Source: Value Research

Mutual Funds

Tell us what you think of this feature