UTI Equity Savings Fund
UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 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 talk about the flagship product – UTI Equity Savings Fund.
UTI Equity Savings Fund
The investment objective of the Scheme is to provide capital appreciation and income distribution to the investors using arbitrage opportunities, investment in equity/equity-related instruments, and debt/money market instruments.
- For Equity Investments: Sector selection combines top-down and bottom-up approaches going through short-term challenges and trading below long-term averages. Stock selection mainly involves Stocks trading at a deep discount to their intrinsic value and with signs of value unlocking. The focus lies mainly on stocks below their long-term averages or when it is cheap relative to market aggregates. Arbitrage opportunities arising out of mispricing in cash & future market. Opportunities that can provide regular accruals.
- For Debt Investments: Debt portfolio is based on accrual strategy, focus on good credit quality, focus on low duration, tactical allocation on G-sec based on in-house view.
As a hybrid fund, the funds are allocated to equity, long-term debts, government securities, and non-current assets. The equity fund allocated 96.2% to large-cap funds, 3.8% to mid-cap.
Top 5 Active Stock Positions
|HDFC Bank Ltd.||Banking||3.1%|
|ICICI Bank Ltd||Banking||2.4%|
|Larsen & Toubro Ltd||Construction||2.1%|
Performance Since Inception
Mr. V. Srivatsa is an Executive Vice President & Fund Manager –Equity at UTI AMC Ltd. He is a B. Com graduate, C.A., CWA, and has a PGDM from IIM, Indore.
He has been with UTI AMC since 2002. Before joining UTI, he worked with Ford, Rhodes Parks & Co., Chartered Accountants for two years, and as Officer-Audit in Madras Cements Ltd.
He started in the securities research department at UTI AMC, covering varied sectors such as Information Technology, Capital goods, and metals. He was promoted as fund manager offshore in December 2005 after a three-year stint in the DOSR.
He was given additional responsibilities for the equity portion of hybrid funds in October 2009. He reports to the Head – Of equities for both the domestic & hybrid equity schemes.
Mr. Sunil Patil is Executive Vice President & Fund Manager – Debt. He joined UTI AMC in October 1989. He has 28 years of experience in Primary Market Investment / dealing and Fund Management.
Who Should Invest?
- Investors looking for overall portfolio diversification.
- Investors who want growth with limited downside risk to their portfolio
- Investors looking for tax-efficient returns
- Retirees looking for moderate and stable returns with low volatility
- First-time investors to the Mutual Fund
- Diversified portfolio construct that limits the volatility
- Aims to create long-term wealth creation by investing in companies that generate economic value
- Portfolio management within well-defined investment philosophy & investment process Around 27 years of Performance track record
- Tax efficiency due to equity taxation
- Competitive expense structure
Ideal Time Horizon
- Ideal for investors with a time horizon of three years and above.
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
The equity portion of the fund’s portfolio is managed actively with both top-down and bottom-up stock-picking approaches.
In contrast, the debt portion is managed with a focus on good credit quality and low duration. The fund has underperformed the benchmark since its inception.
Hence, investors should remain invested long-term to witness alpha generation.