UTI is one of the pioneers of the Indian Mutual Fund Industry. With an AUM of more than Rs 2.80 Lakh crore, the AMC is among the most trusted names in the mutual fund space. The UTI Mutual Fund offers products across asset classes.
Let us discuss the flagship product – UTI Balanced Advantage Fund.
About UTI Floater Fund
Investment Objective – The investment objective of the scheme is to provide long-term capital appreciation and income by investing in a dynamically managed portfolio of equity and debt instruments.
Investment Process
- The scheme seeks to allocate the funds towards equity and debt with an objective to manage the portfolio with optimal asset allocation.
- The equity portfolio will be large-cap biased but sector agnostic, constructed with the bottom-up approach and blend of growth and value styles.
- On the other hand, the fixed income portfolio will focus on the “Quality and Liquidity” of the portfolio by investing predominantly in Sovereign/AAA/equivalent rated securities.
- Net equity long positions of the portfolio will range between 30-90%, whereas 10-35% of the portfolio will be in debt & money market instruments.
Portfolio Composition
The portfolio comprises 51.2% allocation in equity, 29.69% in debt, and the remaining 19.11% in cash and cash equivalents.
Source: Value Research
Top Equity Holdings
| Name | Sector | Weightage % |
| HDFC Bank | Financial | 6.62 |
| ICICI Bank | Financial | 5.69 |
| Larsen & Toubro | Construction | 3.39 |
| Tata Consultancy Services | Technology | 3.18 |
| Infosys | Technology | 3.18 |
Source: Value Research
Top Debt Holdings
| Company | Instrument | Weightage % |
| GOI Sec 7.06 | GOI Securities | 8.56 |
| GOI Sec 7.38 | GOI Securities | 5.77 |
| Kotak Mahindra Bank Ltd | Certificate of Deposit | 2.82 |
| REC Ltd | Non-Convertible Debenture | 1.90 |
| HDFC Bank Ltd | Debenture | 1.90 |
Source: Value Research
Performance Since Inception
| Particulars | 1 Month | 3 Months |
| UTI Balanced Advantage Fund | 0.99% | 7.11% |
| Hybrid: Dynamic Asset Allocation | 0.80% | 9.49% |
Source: Value Research
Fund Manager
Mr. Sachin Trivedi (Equity Portion). He is B.com, MMS, CFA. He is a Fund Manager managing this scheme since August,2023.
Mr. Anurag Mittal (Debt Portion). He is B.com, Master of Science, Chartered Accountant and managing this scheme since August,2023.
Why Invest in UTI Balanced Advantage Fund?
The scheme focuses on the three D’s to provide risk-adjusted tax efficient returns.
- Diversification:
- The scheme intends to invest 30-90% of the portfolio in net equity; 10-35% of the portfolio in fixed income, a good mix of equity and fixed income.
- Dynamic:
- Dynamic asset allocation and rebalancing of the portfolio.
- Discipline:
- Model guided asset allocation based on valuations to eliminate behavioural biases.
Who Should Invest in UTI Balanced Advantage Fund?
This fund is suitable for Investors.
- Who are looking for long term wealth creation.
- Who are looking to diversified portfolio of equity and fixed income.
- Who are looking for a dynamic asset allocation solution to minimise risk of market volatility.
- Who are seeking better risk-adjusted and tax efficient reasonable returns.
Ideal Time to Stay Invested
- Ideal for investment with a time horizon of more than three years.
Conclusion
UTI Balanced Advantage fund is an open-ended dynamic asset allocation fund. It endeavours to provide equity taxation benefits as per prevailing tax laws. The inception date is 17th August 2023, and it’s been just five months since the fund was launched. Therefore, it will be essential to see how the fund performs in the long run.
Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only.
