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 Multi Asset Fund.
What is UTI Multi Asset Fund?
Investment objective
The objective of the Scheme is to achieve long-term capital appreciation by investing predominantly in a diversified portfolio of equity and equity-related instruments.
The fund also invests in debt and money market instruments with a view to generating regular income. The fund also invests in Gold ETFs.
The portfolio allocation is managed dynamically. However, there is no assurance or guarantee that the investment objective of the Scheme would be achieved.
Investment process
The UTI Multi Asset Fund follows a top-down approach for large caps and bottoms up for mid & small caps. Stock selection is fundamentally driven.
For debt selection, this fund focuses on credit & liquidity across the securities spectrum.
Portfolio composition
The portfolio holds the major exposure in large-cap stocks at 76% and sectoral major exposure is to financial services which account for roughly one-third of the portfolio. The top 5 sectors hold nearly 75% of the portfolio.
Source: UTI MF
Top 5 holdings
| Name | Sector | Weightage % |
| Infosys Ltd. | Information Technology | 7.76 |
| Reliance Industries Ltd. | Conglomerate | 6.93 |
| ICICI Bank Ltd. | Financial Services | 6.68 |
| HDFC Bank Ltd. | Financial Services | 5.88 |
| Bharti Airtel Ltd. | Telecommunications | 5.10 |
Source: UTI MF
Performance over 13 years
If you would have invested 10,000 at the time of inception of the UTI Multi Asset Fund, it would be now valued at Rs. 45,117 whereas the benchmark (Nifty 500 TRI) would have fetched you Rs 1.89 Lakhs.
Source: utimf.com
The fund has given consistent returns and has outperformed the benchmark over the period of 13 years by generating a CAGR (Compounded Annual Growth Rate) of 11.40%.
Fund manager
The fund is ably managed by
- Sharwan Kumar Goyal is Fund Manager and Head – Passive, Arbitrage, and Quant strategies at UTI AMC. He is a CFA Charter holder from CFA Institute, USA, and also holds a post-graduate degree in Management (MMS) from Welingkar Institute of Management, Mumbai. He has over 16 years of experience in Risk Management, Equity Research, Portfolio Analysis, and Fund Management at UTI AMC.
- Sunil Patil is Executive Vice President & Fund Manager – Debt. He joined UTI AMC in October 1989. He has overall 28 years of experience in Primary Market Investment/ Dealing and Fund Management.
Who should invest?
Investors looking for
- A multi-asset allocation route for portfolio diversification Investment Horizon
- A long-term wealth creation vehicle.
Why invest?
- Single route access to a diversified portfolio spreading across equity, debt & gold.
- Potential to limit the portfolio downside risk during major market corrections.
Horizon
- One should look at investing for a minimum of 3 years or more.
- Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
The UTI Multi Asset Fund is the oldest fund with a proven track record of 13 years and has delivered 11.40% CAGR consistently.
This fund is suitable for those who can stay put longer for wealth their wealth creation and looking for allocation to multi assets.
