UTI Mastershare- Steady Performer
Author(s): City Air NewsUTI Mastershare Unit Scheme is India’s first equity oriented fund launched in October 1986. UTI Mastershare has a brilliant track record of 28 years of uninterrupted dividend distribution across all market cycles-...
cityairnews
Nov 26, 2015 12:30
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UTI Mastershare Unit Scheme is India’s first equity oriented fund launched in October 1986. UTI Mastershare has a brilliant track record of 28 years of uninterrupted dividend distribution across all market cycles- be it bearish or bullish. Even during the extended bearish phase of 2000-2004 when most of the funds skipped dividends, UTI Mastershare paid dividend due to its prudent investment policy. The scheme has also rewarded investors with bonus and rights on many occasions. UTI Mastershare has distributed Cumulative Gross Dividend at 543.50% aggregating to Rs.2246 crores since its inception.
This scheme is an open end equity oriented scheme having a corpus of Rs.3081 crore (as on Sept 30, 2015) and 5.07 lakh investor accounts (as Sept 30, 2015). It aims at securing capital appreciation / or income distribution over a long term, by investing in equity shares and equity related instruments and fully convertible bonds/debentures of companies. The scheme follows a disciplined approach to invest and has maintained stream of annual dividend by booking annual profits.
UTI Mastershare is a predominantly large-cap focused fund. The scheme’s top holding consist of well known and researched companies like HDFC Bank, Infosys, Axis Bank, TCS, Maruti Suzuki, Reliance Industries, Bharat Forge, ICICI Bank, Asian Paints, SKF India and L&T which account for 46.68% of the portfolio. Scheme has a well disciplined investment criterion in sector/stock allocation and number of stocks.
The scheme has been a steady performer with lower volatility. UTI Mastershare has generated a return (CAGR) of 15.47% against benchmark return of 13.94% since inception (as on 30.9.15). Just to highlight the growth of investment into the fund that an amount of Rs.10000/- invested at inception has become Rs.6,46,632 at the end of Sept 2015 as against Rs.4,38,942/- as per benchmark-S&P BSE 100. The scheme has generated 64 times returns in the last 29 years. UTI Mastershare has an efficient expense structure on account of a large corpus and a lower portfolio turnover ratio which in turn provides scope for superior risk adjusted returns.
Ms. Swati Kulkarni, Executive Vice President and Fund Manager, UTI AMC, said, “UTI Mastershare predominantly invests in large cap stocks with earnings growth potential which we believe are likely to outperform the benchmark on a long term basis. One of the key characteristics of the scheme is that it maintains a well diversified portfolio and avoids sector as well as stock concentration at all points of time. This has helped the Fund in generating moderate steady returns in the past. We believe that this investment approach of building a diversified portfolio of large cap growth stocks helps us aim for consistency in performance."
UTI Mastershare is suitable for those equity investors who are looking to build core equity portfolio with relatively stable and sustainable performance. UTI Mastershare may be considered as a part of one’s Core Portfolio, given its investment philosophy.
Date:
Thursday, November 26, 2015
