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 consumer product – UTI India Consumer Fund.
About the UTI India Consumer Fund
Investment objective
The objective of the scheme is to generate long-term capital appreciation by investing predominantly in companies that are expected to benefit from the growth of consumption, changing demographics, consumer aspirants, and lifestyle.
However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
Investment process
The fund follows the following investment strategy –
- Universe of companies with B2C focus across sectors.
- Companies are likely to benefit from the growth of consumption through bottom-up stock picking.
- Emphasis on companies with the longevity of growth while generating sustainable cash flows.
- High active weights with a market cap agnostic approach
Portfolio composition
The portfolio holds the major exposure in large-cap stocks at 75% and sectoral major exposure is Fast Moving Consumer Goods which accounts for roughly one-fourth of the portfolio. The top 4 sectors hold nearly 75% of the portfolio.
Source: UTIMF
Top 5 holdings for UTI India Consumer Fund
| Name | Weightage % |
| Maruti Suzuki India Ltd. | 7.79 |
| Bharti Airtel Ltd. | 7.44 |
| Asian Paints Ltd. | 5.46 |
| Titan Company Ltd. | 5.16 |
| Nestle India Ltd. | 4.55 |
Source: UTIMF
Performance
Source: UTIMF
The fund has generated a CAGR (Compounded Annual Growth Rate) of 9.16% since inception.
Fund manager
Mr. Vishal Chopda is a 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.
Who should invest in UTI India Consumer Fund?
Investors looking to supplement their core equity portfolio with a differentiated portfolio strategy and invest in the theme of growing consumerism and changing the lifestyle of the Indian consumer.
Why invest in this fund?
- The fund endeavors to invest in companies that are predominantly consumer-facing.
- Invests in sectors that benefit directly or indirectly from rising consumption, changing demographics, consumer aspirations, and lifestyles.
- In stock, picking funds emphasize earnings growth prospects, management, valuation, macro trends, etc.
- The Fund would be agnostic to the market capitalization spectrum.
Horizon
- One should look at investing for a minimum of 5 years or more.
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
The UTI India Consumer Fund is one of the oldest funds with a track record of 15 years and has delivered ~10% CAGR consistently.
Thus, it is best for investors who are willing to take some additional risk for good returns over a long-term spectrum.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
