UTI Healthcare 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 AMC offers products across asset classes.  

Let us talk about the flagship product – UTI Healthcare Fund.

What is UTI Healthcare Fund?

Investment objective

The UTI Healthcare Fund seeks to generate long-term capital appreciation for investors by investing in equity and related securities of multi-cap companies which are involved in Health care activities. 

Investment process  

The UTI Healthcare Fund uses the tactical approach which takes a high risk and has the potential to deliver high returns.

Portfolio composition 

The portfolio holds the major exposure in large-cap stocks at 44% and sectorally major exposure is to healthcare which accounts for roughly 98% of the portfolio.

Top 5 holdings

Name	Sector	Weightage %
Sun Pharmaceutical	Healthcare	13.02
Cipla	Healthcare	9.34
Dr. Reddy’s Laboratories	Healthcare	7.27
Apollo Hospitals Enterprise	Healthcare	5.83
Aurobindo Pharma	Healthcare	4.33

Performance since launch 

If you would have invested 10 lakhs on 30 July 2005, it would be now valued at Rs 83.42 lakhs.

The UTI Healthcare Fund has given consistent returns with an annualized return of 12.99%. 

Fund manager 

The fund is ably managed by Kamal Gada and V Srivatsa. Kamal, prior to joining UTI Mutual Fund, worked with BPCL as Senior Accounts Officer and has been managing the fund since May 2022.

Srivatsa, prior to joining UTI Mutual Fund, worked with Ford, Rhodes Parks & Co., and has been managing the fund since Mar 2007.  

Who should invest? 

Investors looking to 

• Own market leaders in the Healthcare sector 
• Hold a concentrated portfolio 

Why invest? 

• It has a highly concentrated portfolio that invests in the defensive sector of the economy. 
• Fundamentally strong healthcare companies of all market-cap. 

Horizon 

• One should look at investing for a minimum of 5 years or more 
• A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility 

Conclusion 

The UTI Healthcare Fund has delivered good returns over the period. One should have a longer horizon before investing in the fund as it is a sectoral fund.