UTI Focused Equity Mutual Fund

UTI-focused 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 Focused Equity Fund.

About UTI-focused equity fund

1. Investment objective

The investment objective of the scheme is to generate long-term capital appreciation by investing in equity & equity-related instruments of a maximum of 30 stocks across market caps.

However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved. 

2. Investment process  

The investment strategy of UTI Focused Equity Fund involves investing in companies that have sustainable business models, are run by seasoned management, and generate high returns on invested capital.

The fund primarily relies on bottom-up stock picking to create substantial long-term wealth. 

UTI-focused equity fund investment process

3. Portfolio composition 

The portfolio holds the major exposure in large-cap stocks at 67% 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. 

UTI-focused equity fund portfolio composition
Note: Data as of 30th Sep 2022. 
Source: UTIMF 

Performance over 1 year

performance-over-1-year
Note: Performance of the fund since launch; Inception Date – Aug 26, 2021 
Source: utimf.com 

The UTI-Focused Equity Fund has underperformed against the benchmark. This is mainly because the investment horizon is very short in this case as the fund is very new.

Investors have to be invested for a longer investment horizon to see the fund outperforming the benchmark.

Fund manager 

The fund is ably managed by Vishal Chopda. Mr. Vishal Chopda is the Vice President and Fund Manager in the domestic Equity Division of UTI Asset Management Company Ltd. Vishal joined UTI AMC in January 2011.

In UTI he has worked for the past 7 years in the Department of Fund Management as Research Analyst. He has previously worked with CARE Ratings (Credit Analysis and Research Ltd).

He is a CFA Charter holder from The CFA Institute, USA, and also holds a PGDM from Management Development Institute, Gurgaon. He has completed his B.E. from Mumbai University. 

Who should invest in UTI Focused Equity Fund? 

Investors looking to 

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

Why invest in UTI-Focused Equity Fund? 

Investors

  • looking for a high-conviction and concentrated portfolio backed by research expertise and risk assessment framework. 
  • who have a long-term goal of wealth creation and balance an overall conservative portfolio construct. 

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 Focused Equity Fund is a relatively new fund with a focused portfolio holding.

It is best for investors who are looking for a concentrated portfolio backed by research and want to create wealth in long term by having a high-risk strategy in their portfolio. 

Disclaimer

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

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