UTI Equity Fund aims to generate capital appreciation by investing in a diversified portfolio

Launched in May 1992, UTI Equity Fund aims to generate capital appreciation by investing in a diversified portfolio of leading stocks in the respective sectors. The aim is to invest across market capitalisation, with large caps comprising around 77 per cent of the portfolio.

 

UTI Equity Fund has received CPR 1 ranking from CRISIL under Consistent Performers (Equity Funds) for quarter ended Sept 2015 and a 4 Star rating from Value Research (as of December 2015). These ratings indicate good performance in its category The fund is managed by Ajay Tyagi, EVP and Fund Manager, UTI Mutual Fund.

 

As on December 31, 2015, UTI Equity Fund has generated a return (CAGR) of 12.22% against benchmark return of 9.86% since inception.

A lump sum investment of Rs.10000/- made at time of launch of the scheme in May 1992 would have appreciated to Rs.152560/- as on December 31, 2015 as against Rs.92314/- of  benchmark, S&P BSE100.

The fund’s consistent performance is also associated with lower volatility or market risk (measured by standard deviation). The volatility of 14.4 per cent is less compared to the S&P BSE 100  of 16 per cent over a one-year period ending Dec 31, 2015.

 

In terms of market capitalisation, the fund is biased towards large-cap with 77 per cent of its equity exposure in large-cap stocks  as of Dec 31, 2015.

 

According to the mandate, the fund maintains a diversified portfolio. At a sector level, the fund has 71 per cent exposure to the top five sectors. As on Dec 31, 2015, the fund has been overweight on sectors like financial services, automobile, IT,  Energy and underweight on sectors like cement, pharma and consumer goods. The funds top holding consists of well known and researched companies like HDFC Bank, Infosys, Reliance Industries, Sun Pharmaceuticals, TCS, Shree Cement and ICICI Bank.