The market value of the 60,000 shares bought by the Infotech Fund is pegged at Rs 14.35 crore. The ADS exposure constitutes 3.23 per cent of the fund's corpus. The Infotech fund has also an investment in 62,791 shares of Wipro, whose market value is Rs 14.95 crore, thereby taking the total exposure of the fund in Wipro to 6.6 per cent.

Fund manager R Sukumar of the three schemes (excluding Prima Plus) said "we invested in the ADS issue of Wipro as it was priced attractively. We have always liked the fundamentals of the company but has stayed away due to valuation concerns. But our decision to invest has turned out well as there has been an improvement in stock price and the ADS of the software major listing on NYSE at an 18 per cent premium".

The ADS of Wipro was priced at $41.35 (each ADS comprising one underlying domestic share) and the company had raised $135 million from it. The listing at $44.5 was at a premium and had even crossed the $50 mark on debut.

concerns. But our decision to invest has turned out well as there has been an improvement in the stock price This is for the second time that Kothari Pioneer has participated in an Indian company's ADS. In June this year, it had bought the ADS of Rediff.com.

Kothari is amongst the very few funds who have participated in the ADS of these companies after the Securities and Exchange Board of India allowed mutual funds to invest in the Indian companies stocks listed in the international stock exchanges. The regulator has set an investment ceiling of $ 50 million for the whole domestic mutual fund industry.

The fund has drastically cut its exposure to Satyam Computers. It had its second largest exposure in this stock with an investment of 12,23,761 shares accounting for 12.04 per cent of the corpus in September and this has dropped to 3,33,761 shares and accounting for just 2.31 per cent of the total assets in October. The report observes that Satyam's results weremarked by contracting margins.

Its exposure during October in Infosys, its top holding, is at 21.14 per cent of the corpus with no change in the number of share held in comparison with the previous month.

The portfolio turnover of the fund is at a whopping 96.74 per cent for October, against 25.04 per cent during the previous month. "During the month we have rationalised our smaller holdings," says the report.

The fund holds Rs 125.61 crore in other current assets which accounts for 28.24 per cent of total assets. These are generally near cash instruments or cash waiting to be deployed.