UTI Core Equity Fund

UTI Core Equity Fund

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 Core Equity Fund.

About UTI Core Equity Fund 

Investment objective

The objective of the scheme is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of large-cap and mid-cap companies. 

Investment process  

The UTI Core Equity Fund carries a top-down approach, going through short-term challenges and trading at below long-term averages.

It focuses on stocks that are below their long-term averages or when it is cheap relative to market aggregates.

UTI core equity fund investment process

Portfolio composition 

The portfolio holds the major exposure in large-cap stocks at 50% and sectoral major exposure is to financial services that account for roughly one-third of the portfolio. The top 5 sectors hold nearly 75% of the portfolio.

Note: Data as of 30th Sep 2022. 
Source: UTIMF 

Top 5 holdings

Name Sector Weightage % 
ICICI Bank Ltd. Financial Services 5.50 
HDFC Bank Ltd. Financial Services 5.28 
ITC Ltd. Consumer Goods 3.58 
Federal Bank Ltd. Financial Services 3.56 
State Bank of India Financial Services 3.55 
Note: Data as of 30th Sep 2022. 
Source: UTIMF 

Performance over 13 years

Below are the rolling returns of the fund since inception. 

UTI core equity fund performance over 13 years
Note: Data as of 30th Sep 2022. 
Source: UTIMF

The fund has given consistent returns and has outperformed the benchmark over the period of 13 years by generating a CAGR (Compounded Annual Growth Rate) of 11.42%. 

Fund Manager 

The fund is ably managed by V. Srivatsa. Mr. V. Srivatsa. He is an Executive Vice President, Fund Manager – Equity at UTI AMC Ltd. He is a BCom graduate, C.A., C.W.A., and has a PGDM from IIM, Indore.

He has been with UTI AMC since 2002. Prior to joining UTI, he worked with Ford, Rhodes Parks & Co., Chartered Accountants for 2 years, and as Officer-Audit in Madras Cements Ltd.

He started in UTI AMC in the Department of securities research covering varied sectors such as Information Technology, Capital goods, and metals. 

Who should invest in UTI Core Equity Fund? 

Investors looking to 

  • Build their core equity portfolio for steady wealth creation. 
  • Own a portfolio of both large & mid-capitalization stocks. 

Why invest in UTI Core Equity Fund? 

  • Large-cap stocks endeavor to provide stability & liquidity and mid-cap stocks can potentially generate superior returns for the portfolio. 
  • The Fund maintains a well-diversified portfolio and avoids sector as well as stock concentration. 

Horizon 

  • One should look at investing for a minimum of 5 years or more. 
  • Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market. 
Conclusion 

The UTI Core Equity Fund is one of the oldest funds with a proven track record of 13 years and has delivered 11.42% CAGR consistently.

Thus, it is best for investors who want stable returns with large-cap stocks and high growth potential with mid-cap stocks. 

Disclaimer

This is not recommendation advice. All information in this blog is for educational purposes only. 

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