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UTI MF - Fund Review write-up for the month activity


Posted on : 20/Apr/2018 16:58:09

UTI Opportunities Fund is an open-ended equity fund launched in the year 2005. The Fund has AUM of Rs. 4,110 Crores with over 4,40,000 unit holder accounts as of 31st March, 2018.

The scheme has a proven track record of over 12 years and has generated a return (CAGR) of 14.68% against benchmark return of 14.23% since inception (as on March 31, 2018).

An amount of Rs.10,000/- invested at inception has become Rs.56,982/- at the end of March  2018 as against Rs.52,777/- of benchmark S&P BSE 200 TRI. 

Consequent to the Categorization & Rationalization of schemes, UTI Opportunities Fund has been characterized as Value Fund following a value investment strategy investing across the market capitalization spectrum from its previous avatar of investing in predominantly in large-cap stocks. However, the Fund would continue to follow the investment strategy of investing into stocks where the cash flow or return ratios are likely to improve and are over relative valuations. The Fund has 81% in Large Caps and remaining in Mid & Small caps as on March 31, 2018. The schemes top holding consists of well-known and researched companies like HDFC Bank, Indus Ind Bank, Infosys, Maruti Suzuki India Ltd., Mahindra & Mahindra Financial Services Ltd., ICICI Bank Ltd., TCS, Gail India, Tech Mahindra, & Indian Oil Corporation Ltd. which accounts for over 52% of the portfolio.

UTI Opportunities Fund looks to take aggressive sector positions. The positioning is based on valuation considerations and on medium term growth prospects. Within individual sectors, the fund is guided more by the fundamental characteristics of the company such as its return ratios & healthy cash flows. In stock picking, the fund emphasizes these factors over relative valuations. In selecting stocks, the fund manager also looks for opportunities in stocks where the cash flows or return ratios are likely to improve. The fund has flexibility to position itself more actively across the market cap spectrum. While the portfolio will have a large cap bias the mid cap exposure could vary more widely based on valuation differentials. The style will be a combination of top down and bottom up stock picking where valuations will drive the sector allocation and growth prospects will drive the stock allocation.

UTI Opportunities Fund is suitable for those equity investors looking to build their core equity portfolio and seeking long term capital growth through investment in equity instruments of companies with good growth prospects.