Looking for a portfolio concentrated in the fastest growing sector with a cushion of bluechip 'click
15-Aug-2000 •Research Desk
Looking for a portfolio concentrated in the fastest growing sector with a cushion of bluechip 'click & mortar' companies? Your search ends with KP Internet Opportunities Fund! The scheme is designed to leverage investment opportunities presented by the phenomenal growth potential of the Internet. At its current levels, KPIOF does not look comforting for it was launched when the markets were on a free fall. But what makes KPIOF a promising option is its intelligent stock picking. Investments are concentrated in technology and software companies with an Internet focus and firms aiming at growth through convergence or other Internet based strategies. No wonder, traditional stocks like ICICI, HDFC, HLL and Cadbury form a part of its portfolio since these companies are harnessing the internet to expand business and reach out to more customers. Add to it, these companies are not "technology companies" per se and hence, will cushion the fall in the otherwise volatile sector. The top five holdings, as on June 30, 2000, with nearly 53% of the assets, are all consistent performers. Besides, the fund manager R Sukumar's choice of stocks is not limited to Indian shores. KPIOF has also invested in the ADRs of Rediff.com. It is but obvious that the Internet and Internet enabled services are here to stay and will continue to shape our day-to-day lives. Don't get impatient if the NAV is low since it is a short-term phenomenon. KPIOF carries a long-term growth potential with lower volatility vis-à-vis dedicated software funds.