You are here: Home » Markets » News
Business Standard

Alliance New Millennium


With a performance graph closely tracking the benchmark BSE IT Index, Alliance New Millennium bears testimony to the dizzying heights and scary downfalls of the technology stocks.

Despite a deep bath, the fund manager remains a strong believer in technology stocks for their growth potential. But shows a clear preference limited to the top rung technology stocks. Today, these stocks account for 75 per cent of the portfolio.

Launched in January 2000, Alliance New Millennium seeks capital growth with focus on technology and technology dependent companies. And the fund was quickly deployed fully in a wide assortment of technology and media stocks off all kind. This was shortly followed by strong market's distaste for technology and media stocks, leading to its sharp fall to Rs. 2.88 now (as on 1/11/01).

With a shrinking asset base and changed weather for technology, the fund has struck to its bottoms up stock picking style and was quick to weed out the second rung technology stocks like - Aftek Infosys, Aptech, SSI.

The fund has gradually consolidated its portfolio with top 5 portfolio positions accounting for 64 per cent of assets.

The fund has the flexibility to other technology dependent sectors besides technology. And it has selectively spread its portfolio in media, diversified and hardware stocks. Interestingly, 10 percent of the assets in Reliance Industries is a tough technology sell.

Despite its selectivity and broader spread the fund has fallen just as much as the benchmark and its peers - 59 percent year-to-date fall through November 1, 2001.

Investors deep in red with Alliance New Millenium, the fund is unlikely to bring cheers in the short-run. However, in case of economic recovery, technology stocks will be among the first to benefit, and large-cap stocks will see a strong rebound. Besides, the competitiveness of the large Indian software firms remains intact.

Alliance New Millenium could benefit from its sharp focus on high growth companies. But sailing in this fund will remain turbulent as ever.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, November 05 2001. 00:00 IST