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 AMF offers products across asset classes.
Let us talk about the flagship product – the UTI Value Opportunities Fund.
UTI Value Opportunities Fund
The investment objective of the UTI Value Opportunities Fund
The primary objective of the UTI Value Opportunities Fund is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of companies across the market capitalization spectrum.
The investment process of the UTI Value Opportunities Fund
The UTI Value Opportunities Fund carries a blend of a top-down approach for sector concentration and a bottom-up approach for stock picking.
It follows a barbell approach while picking stocks which means that it invests in those stocks that the market underestimates.
Portfolio composition of UTI Value Opportunities Fund
The portfolio holds the major exposure in large-cap stocks at 68% and sectoral major exposure is to financial services that account for roughly one-third of the portfolio. The top 4 sectors hold nearly 61% of the portfolio.
Source: UTIMF
Top 5 Holdings UTI Value Opportunities Fund
| Name | Sector | Weightage % |
| HDFC Bank Ltd. | Bank | 9.63 |
| ICICI Bank Ltd. | Bank | 6.98 |
| Infosys Ltd. | Information Technology | 6.45 |
| Axis Bank Ltd. | Bank | 5.19 |
| Bharti Airtel Ltd. | Telecom Services | 3.86 |
Source: UTIMF
Performance over 15 years for UTI Value Opportunities Fund
Below are the rolling returns of the fund since inception.
Source: UTIMF
The fund has given consistent returns and has outperformed the benchmark over the period of 15 years by generating a CAGR (Compounded Annual Growth Rate) of 14.38%.
Fund Manager
Amit Premchandani: is the Senior Vice President and Fund Manager – Equity. He holds a PGDM from IIM Indore and a CFA charter from CFA Institute, USA.
He has completed a CA from ICAI. He graduated with a Bachelor of Commerce in 2001 from Heramba Chandra College, Kolkata. Amit joined UTI AMC in 2009 as a Senior Research Analyst
Who should invest in the UTI Value Opportunities Fund?
Investors looking to
- build their core equity portfolio with a good risk appetite.
- marginally increase their risk spectrum with a concentrated sector allocation portfolio strategy.
Why invest in this Fund?
- The fund emphasizes fundamental characteristics of the company such as return ratios & healthy cash flows.
- The Fund has the flexibility to position itself more actively across the market cap spectrum.
Horizon
- One should look at investing for a minimum of 5 years or more.
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
The UTI Value Opportunities Fund is one of the oldest funds with a proven track record of 15 years and has delivered 14.38% CAGR consistently.
Thus, it is best for investors who are willing to take some additional risk for good returns over a long-term spectrum.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
