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 UTI Mutual Fund offers products across asset classes. Let us talk about the flagship product – UTI Infrastructure Fund.
About UTI Infrastructure Fund
Investment objective:
The investment objective of the Scheme is to provide long-term capital appreciation by investing predominantly in equity and equity-related securities of companies engaged either directly or indirectly in the infrastructure areas of the Indian economy.
However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.
Investment process:
The fund would predominantly invest in stocks of companies engaged either directly or indirectly in the infrastructure areas of the Indian economy:
The infrastructure sector is a crucial driver of the economy, playing an essential role in propelling India’s overall development.
The fund emphasizes a bottom-up strategy for stock selection and is positioned to profit from the early revival in the investment cycle.
The fund would be agnostic to market capitalization. However, it may take concentrated exposure to certain stocks or sectors.
Portfolio composition
The portfolio holds significant exposure in large-cap stocks at 64%, and major sectoral exposure is to Construction and Capital Goods that combinedly account for roughly one-third of the portfolio.
The top 5 sectors hold more than 63% of the portfolio.
Source: UTIMF
Top 5 Holdings for UTI Infrastructure Fund
| Name | Sector | Weightage % |
| Larsen & Toubro Ltd. | Construction | 9.94 |
| Bharti Airtel Ltd. | Telecom | 9.27 |
| NTPC Ltd. | Power | 5.97 |
| Ultratech Cement Ltd. | Construction Materials | 5.93 |
| Reliance Industries Ltd. | Oil, Gas & Consumable Fuels | 4.82 |
Source: UTIMF
Performance since inception
If you had invested 10,000 at the time of the fund’s inception, it would now be valued at Rs. 89,192, whereas the benchmark (Nifty Infrastructure TRI) would have fetched you only Rs 54,474.
Source: utimf.com
The fund has consistently outperformed the benchmark and generated significant alpha. Investors must remain invested for a longer horizon to see the fund outperforming the benchmark.
Fund Manager
Mr. Sachin Trivedi ably manages the fund. Mr. Sachin Trivedi is Senior Vice President and designated Head of Research & Fund Manager, Equity at UTI AMC Ltd.
He is a B.com graduate from Narsee Monjee College of Commerce, Mumbai. He holds a post-graduate degree in management (MMS) from the K. J. Somaiya Institute of Management Studies &; Research, Mumbai University.
He also holds a CFA charter since 2004 conferred on him by the CFA Institute, USA. He began his career in June 2001 with UTI.
Sachin has 16 years of experience in research and portfolio management. In research, he has specialized in Auto OEM, Utilities, Capital Goods, and Logistics.
Who should invest?
Investors looking to
- Invest in a fund following a theme of investing in stocks of companies engaged directly or indirectly in the infrastructure areas of the Indian economy.
- Have a tactical allocation to their overall equity portfolio
- Increase the risk spectrum of their portfolio with exposure to a thematic portfolio philosophy
Why invest?
- Increasing spending on Infrastructure by Govt. of India would potentially drive the infrastructure sector to outperform broader indices in the medium to long term.
- The fund provides risk diversification through investments in several stocks of the same sector in a cost-effective manner.
Horizon
- Ideal for investment with a time horizon of, preferably, five years or above
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
The UTI Infrastructure Fund is ideal for a tactical allocation, with relatively better return potential than the diversified equity funds. This fund is best if you are bullish on infrastructure themes and ready to take high risks.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
