``The trend reflects that Indian stocks are doing well despite US sanctions following the nuclear tests conducted by India,'' said Nayak.

The close-ended fund's net asset value (NAV) has outperformed the 30-share BSE Sensitive Index over the last one year.

The fund's rupee NAV as on May 27 increased by 20.3 per cent over the previous year, compared with a 2.31 per cent rise in the Sensex. The rupee NAV has gone up by 17.27 per cent against an increase of 6.8 per cent in the Sensex in the past few months. UTIIAS acts as an investment advisor to the UTI-sponsored fund. The strategy of restructuring the portfolio and pruning the number of scrips in the portfolio has given good results over the last year, he said.

In addition to the reduction in the number of scrips andrestructuring of the portfolio, the fund has, over the last one year, increased its exposure to scrips in the fast-moving consumer goods, pharmaceuticals and software sectors.

The top 10 scrips which contributed 50 per cent to the NAV are ITC, Hindustan Lever, NIIT, TVS Suzuki, Bajaj Auto, SmithKline Beecham, Reliance Industries, Punjab Tractors, Hero Honda and Mahindra & Mahindra.

The top 50 scrips constitute nearly 90 per cent of the portfolio of the fund. The fund is currently quoted at $9.25 on the New York Stock Exchange as against its NAV of $11.9. Last year, after the Asian crisis, close-ended country funds from emerging markets started trading at a discount.

The IGF, too, has been trading at a discount to the NAV at 17 per cent. It is expected that rally would help improve the price of funds quoted on the NYSE, said Nayak.

According to Lipper International Analytical Closed-End Country Funds Service, on the basis of total return performance for the year ended Match 31, 1998, IGF was rankedfirst on a six-monthly comparison among 10 close-ended India funds. It was ranked second over a one year comparison.