Mutual Funds - ICICI Pru Services Industries Fund - Analysis

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ICICI Pru Services Industries is an open-ended equity scheme that seeks to invest in companies belonging to the service industries across various market capitalisation segments.

Over the six months ended December 2007, its assets expanded 50 per cent and the NAV moved up 40 per cent.

Here is a look at the portfolio churn in the above period.

In the past six months, the fund trebled its exposure to the construction sector.

Holdings in Patel Engineering surged four-fold, the stock cornering 7 per cent of the portfolio. The fund added recently-listed Maytas Infrastructure to the portfolio, along with Indiabulls Real Estate and Orbit Corporation.

Exposure to banking space moved up marginally. ICICI Bank, HDFC Bank and Bank of Baroda were accumulated while PSU banks Andhra Bank, Punjab National Bank and Union Bank of India moved out. State Bank of India was added afresh.

Asset allocation to the IT sector declined marginally. Holdings in mid-cap stock Nucleus Software were pruned by more than 50 per cent even as Mphasis BFL Software moved out completely. NIIT and Satyam Computer Services were new additions.

The fund appeared to vary its strategy in the capital goods space. During the market correction in February 2007, exposure to the sector, which was 11 per cent of the portfolio, was brought down substantially.

The fund, however, again increased the asset allocation to the sector over the past few quarters. Larsen & Toubro and Hindustan Dorr-Oliver were the new faces.

The pharma sector, which under-performed the broader market over the past year was pruned substantially.

The fund moved out of large-cap stocks Dr Reddy Laboratories and Sun Pharmaceuticals and instead added small-caps such as Vimta Labs.

Holdings in Reliance Communication were trebled in the past six months. Bharti Airtel did not witness any significant change in exposure.

The huge run-up in the stock price of India Infoline did not deter the fund from accumulating the stock, in which it has enhanced exposure by 50 per cent in the past six months. The recently listed Religare Enterprises was also added afresh.