We have to churn our portfolio every quarter

MANAGER SPEAK

 Given the good performance of large-cap technology stocks like Infosys, Wipro and Satyam, do you plan to increase exposure to these stocks?

We have increased our exposure to large-cap stocks in the last quarter after seeing a rise in volumes in the sector and the hiring spree the big companies were going on.

An increase in volumes implies the companies' businesses would see an improvement.

Is there potential left in technology stocks given their recent rise? How do mid-cap tech stocks compare with the large-cap ones?

We do not look at sectors per se. We look at individual companies and decide if they should be included in our portfolio.

Going forward, our approach will have to be more active. We shall have to churn our portfolio on the basis of the quarterly results of the companies.

The same holds for mid-cap stocks. We shall choose stocks that look attractive. We shall follow a bottom-up approach to investing.

Your fund has got a sprinkling of media and telecom companies. What is the rationale behind this?

Our fund follows the benchmark BSE Technology Index. The index has a high proportion of media and telecom companies in it. Therefore, our fund also has an exposure to these companies.

Within media and telecom companies, we have chosen companies that have a good upside potential.

If you look at our portfolio, you will notice that the media and telecom companies we have invested in have good potential to grow.