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.
UTI Hybrid Equity Fund
Investment objective
The scheme’s primary objective is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of companies across the market capitalization spectrum.
The fund also invests in debt and money market instruments to generate regular income.
Investment Process
The scheme proposes to invest in equity and equity-related instruments across market capitalization and follow a blend of growth and value-based approaches.
The equity portfolio of the scheme shall be constructed around companies evaluated based on though not limited to, cash flow generation, RoCEs/ RoEs, and good management track record.
The fund uses a bottom-up and top-down approach with an emphasis on the microeconomic factor of the underlying business.
Portfolio Composition
As a hybrid fund, the funds are allocated to equity, long-term debts, government securities, NCA, and INVIT. The equity fund allocated 68% to large-cap funds, 21% to mid-cap, and 11% go into small-cap.
Source: UTIMF
Top 5 Holdings for UTI Hybrid Equity Fund
| Name | Sector | % |
| HDFC Bank Ltd. | Banking | 6.5% |
| ICICI Bank Ltd | Banking | 5.67% |
| Infosys Ltd | IT | 4.68% |
| Larsen & Toubro Ltd | Construction | 3.95% |
| ITC Ltd | IT | 3.77% |
Source: UTIMF
Performance Since Inception
Date – 2nd Jan. 1995.
Source: UTIMF
Fund Manager
V Srivatsa: Mr. V. Srivatsa is an Executive Vice President & Fund Manager of 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 an 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.
Who Should Invest?
- Investors who are seeking long-term capital appreciation.
- Investors looking to diversify through a portfolio mix of equity (for growth) and debt for (limiting downside)
- UTI Hybrid Equity Fund suits investors with a moderate risk appetite and a long-term investment horizon.
Why Invest?
- Around 27 years of Performance track record
- Portfolio diversification with a Distinct asset class of equity & debt helps attain diversification for the portfolio.
- Quality Portfolio mix of equity & debt Focus on established large-cap names & quality debt papers.
Horizon
- Ideal for investors with a time horizon of five years and above.
- Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
The equity portion of the fund’s portfolio is managed actively with a bottom-up stock-picking approach, while the debt portion is managed with a focus on credit quality and liquidity.
The fund has performed consistently with a CAGR of more than 14% with moderate risk. Hence, investors looking to generate wealth without aggressive risk can consider this fund.
