VR Logo

UTI's fancied lot

The 29 open and closed-end equity funds of UTI hold an exposure of Rs 781.5 crore in Reliance Ind. In other words, the funds hold 1.89 crore shares of the Fortune 500 company. The stock is also the top holding (14.99%) in the balanced fund, US-64.

"Mirror, mirror on the wall; who's the fancied of them all?'' Pose this question to UTI Chairman P S Subramanyam and he would reply Reliance Industries without batting an eyelid. Well, UTI's funds simply rely on the company's stock for performance and returns. The 29 open and closed-end equity funds of Unit Trust of India hold an exposure of Rs 781.5 crore in the petrochemicals major. In other words, the funds hold 1.89 crore shares of the Fortune 500 company. The investments range from Mastershare and Mastergain to UGS 1000 and UTI GSF Services Sector Fund.

The stock is also the top equity holding (14.99%) in the balanced fund, US-64. Assuming that the behemoth had a size of Rs 16,000 crore on February 28, the fund owns another 5.8 crore shares with an investment of Rs 2400 crore! With a staggering total investment of Rs 3200 crore, the UTI funds hold 7.28% of the company's total equity at Rs 1053.75 crore. This still excludes the string of monthly income plans, where UTI has also invested in Reliance's equity shares.

That's not all. The funds, including US-64, have put another Rs 1226 crore in Reliance Petroleum. They own roughly 20 crore shares of the refining company with US-64 taking the lion's share at 16.37 crore shares. This is estimated to be nearly 5% of the company's equity of Rs 4299 crore!

Among other firm favourites are ITC, HLL, Infosys, Satyam Computers, Hindalco, L&T and MTNL, in that order. Such is the dominance of U-9 (including Reliance companies) in UTI's equity portfolios that they accounted for 51% of the total assets of Rs 7200 crore under the 29 equity funds on February 28, 2001. The pre-eminent holding in these stocks gives a diversified flavour to Trust's investments. Further, all these companies are leaders in their industries with large capitalisation, a well spread holding pattern and hence, offer high liquidity. The high exposure in these stocks has also been necessitated with the large asset base of most UTI funds.

And, despite the sharp fall post-budget, these stocks still continue to maintain their mellowed yet dominant position. But for HFCL, which has seen its weight erode with a sharp drop in price, UTI would have surely provided us with its list of U-10!