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 – UTI Banking & Financial Services Fund.
About the UTI Banking & Financial services fund
The investment objective of UTI Banking & Financial services fund
The objective of UTI Banking & Financial Services Fund is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of companies/institutions engaged in banking and financial services activities.
Investment Process of UTI Banking & Financial services fund
This fund has a bottom-up approach to stock picking. It looks for companies that are having sustainable growth models and are well-capitalized.
It focuses on well-managed companies with a balance between compounders and turnaround opportunities.
Portfolio composition of UTI Banking & Financial services fund
The portfolio holds the major exposure in large-cap stocks at 89%. The major sectoral exposure is to financial services and banking companies, which comprise around 96% of the portfolio as this is a sectoral fund.
Source: UTIMF
Top 5 Holdings of UTI Banking & Financial services fund
| Name | Sector | Weightage % |
| HDFC Bank Ltd. | Financial Services | 19.25 |
| ICICI Bank Ltd. | Financial Services | 17.7 |
| Axis Bank Ltd. | Financial Services | 9.74 |
| State Bank of India | Financial Services | 9.25 |
| HDFC Ltd | Financial Services | 6.42 |
Source: UTIMF
Performance over 19 years
If you would have invested Rs. 10,000 at the inception of the fund, it would be now valued at Rs. 1.28 lakhs.
The fund has given consistent returns and has outperformed the benchmark over the period of 19 years by generating a CAGR (Compounded Annual Growth Rate) of 14.59%.
Fund manager
Amit Premchandani: is Senior Vice President & Fund Manager – Equity. He holds PGDM from IIM Indore and CFA charter from CFA Institute, USA. He has completed CA from ICAI. He graduated with a Bachelor of Commerce in 2001 from Heramba Chandra College, Kolkata. Amit joined UTI AMC in 2009 as Senior Research Analyst
Preethi R S: is an Associate Vice President and research analyst in the domestic Equity Division of UTI Asset Management Company Ltd. She tracks the non-banking finance and automobile-ancillary sectors.
Who should invest in UTI Banking & Financial Services Fund?
- Investors looking for a portfolio investing in companies engaged in banking and financial services activities.
- Investors are willing to have a tactical allocation to their overall equity portfolio.
Why Invest in UTI Banking & Financial Services Fund?
- The Fund predominantly invests in stocks of companies engaged in the banking, insurance, and financial services-related activities of the Indian economy.
- The Fund endeavors to invest across the existing and evolving sub-sectors in the space.
Time 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 19 years and has delivered 14.59% CAGR consistently.
Thus, it is best for investors looking for a tactical allocation with a sectoral concentration in banking and financial services.
