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Tata Life Sciences & Technology

Tata Life Sciences & Technology is specialty fund with a focus on growth stocks. The scheme declared

Tata Life Sciences & Technology is specialty fund with a focus on growth stocks. The scheme declared its maiden dividend of 25% in March 2000. Investments between October 1 and 31 December 2000, will not attract any entry load. However redemption before 3 and 6 months faces a load of 1% and 0.5%, respectively. The fund seeks to invest in a diversified basket of growth stocks from infotech, Telecom, Pharma, Agrochemical and FMCG sectors. The fund started off with a substantial exposure to technology and pharma stocks, each accounting for 39% of the corpus. However, with the ICE rally ruling the roost since November 1999, the fund hiked its exposure to technology, which has averaged at 60 % since. Within this, while making investments in A group stocks, the fund has also taken active exposure to B1 stocks, which have been highly volatile. For instance, Visualsoft India has consistently been one of the top holdings of the fund. The rest of the portfolio largely comprises of pharma stocks, with a marginal exposure to FMCG, Telecom and diversified industries. With this orientation, the fund has posted a return of 10.11% since launch. With its relative diversification as opposed to a dedicated sectoral fund, the scheme should have been less volatile. However, with both IT and pharma stocks being hammered, the fund has been unable to hold its ground. While the Infotech and Pharma funds have shed an average 32 and 33%, the fund has lost 38 % year to date ending October 13, 2000. Tata Life Sciences and Technology, despite its diversified focus, has emerged a volatile fund in its brief term.