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The hottest stocks!
Value Research
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March 16, 2005

Let's take a look at the most popular stocks that equity fund managers favour.

There are two types of equity funds: Diversified Equity Funds and Equity-Linked Saving Schemes.

i. Diversified equity funds are a great way to get a piece of the stock market without buying and selling shares directly. You can invest your money in a mutual fund and a fund manager will do the investing on your behalf.

The name itself indicates the fund will invest in various companies of various sectors. Instant diversification!

ii. Equity-linked savings schemes are the mirror image of diversified equity funds with an additional tax benefit.

If we are talking of this investment year (April 1, 2004 to March 31, 2005), you can invest upto Rs 10,000 a year in an ELSS to avail of the tax rebate.

Let's do it with figures.

You have to pay tax = Rs 18,000

Your rebate = 20%

You invest Rs 10,000 in ELSS.

Your savings = Rs 2,000 of your tax (20% of Rs 10,000)

So, instead of paying tax of Rs 18,000, you pay a tax of Rs 16,000 (18,000 - 2,000).

For the next investment year (April 1, 2005 to March 31, 2006), there is a change. You can pick your limit (up to Rs 100,000).

Fund managers' favourite stocks

State Bank of India [Get Quote] tops the list.

Of the 120 diversified equity funds and ELSS:

Top 5 scrips in terms of presence

Company

Number of funds that have invested in this stock

State Bank of India

68

Infosys [Get Quote] Technology

63

BHEL

63

ONGC [Get Quote]

58

ACC

57

Top 5 scrips in terms of value

Company

Amount invested(Rs / crore)

State Bank of India

1214.8 (12 billion)

Infosys Technology

781.9 (7 billion)

Reliance Industries [Get Quote]

641 (6 billion)

Grasim Industries [Get Quote]

608.6 (6 billion)

ACC

550.7 (5 billion)

Data as on February 28, 2005.

Value Research


 


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