UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 Lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMC offers products across asset classes.
Let us talk about the flagship product – UTI Banking & Financial Services Fund
UTI Banking & Financial Services Fund
Investment objective
The UTI Banking & Financial Services Fund seeks to generate long-term capital appreciation for investors by investing in equity and related securities of multi-cap companies that are involved in Banking and Financial Services activities.
Investment process
The UTI Banking & Financial Services Fund uses the tactical approach which takes a high risk and has the potential to deliver high returns.
Portfolio composition
The portfolio holds the major exposure in large-cap stocks at 84% and sectorally major exposure is to banking and financial services that account for roughly 90% of the portfolio.
Source: Value Research
Top 5 holdings
| Name | Sector | Weightage % |
| ICICI Bank | Financial Services | 18.51 |
| HDFC Bank | Financial Services | 18.32 |
| Axis Bank | Financial Services | 9.80 |
| State Bank of India | Financial Services | 9.55 |
| HDFC | Financial Services | 6.16 |
Source: Value Research
Performance since launch
If you had invested 10 lakhs on 1 Aug 2005, it would be now valued at Rs 83.88 lakhs.
Source: moneycontrol
The UTI Banking & Financial Services Fund has given consistent returns with an annualized return of 13.03%.
Fund manager
The fund is ably managed by Amit Kumar Premchandani and Preethi RS. Amit has over 11 years of experience and has been managing the fund since June 2014.
Preethi joined in May 2022 and is a new entrant in this fund management.
Who should invest?
Investors looking to
- Own market leaders in Banking & Financial Services sector
- Hold a concentrated portfolio
Why Invest?
- It has a highly concentrated portfolio that invests in the ever-green sector of the economy.
- Fundamentally strong financial services companies of all market-cap.
Horizon
- One should look at investing for a minimum of 5 years or more
- A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility.
Conclusion
The fund has delivered good returns over the period. One should have a longer horizon before investing in the fund as it is a sectoral fund.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
