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Top UTI Mutual Funds

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UTI-Mutual-Fund

In 1963, the Unit Trust of India (UTI) was set up.  This is the birth year for Indian mutual fund industry. In 1964, UTI mutual fund had launched US 64 scheme which went on to become the most popular scheme to invest in among investors till the government allowed public sector banks to start mutual funds in 1987. In 2001, UTI mutual fund was on the verge of collapse. It was bailed out by the government and the fund was restructured. It was then incorporated on 14th Nov, 2002. After, restructuring the fund has managed to redeem its credibility. It is due to the professional team of management looking after the operations. Now, they offer mutual fund products in Liquid Funds, Income Funds, Asset Allocation Fund, Index Funds, Equity Funds and Balanced Fund.

The assets under management are Rs 64445.65 crores as of June, 30, 2010.                                                            InvestmentYogi analyses the top UTI mutual funds in the Balanced Fund, Equity Fund and Equity Linked Savings Scheme (ELSS) categories.

Best performing “Balanced Fund” is:

UTI Balanced Fund: The objective of the scheme is providing capital appreciation to its investors. This scheme was launched on Jan, 1st 1995. The top sector allocations are BFSI, Engineering, Oil and Gas. This fund has given 18.24% returns from its inception date. The fund managers are Mr. Amandeep Chopra and Mr. V. Srivatsa.

AMC-UTI Graph 1a

Source: Value Research Online  -  Data as of June 30, 2010

The annualized return in last 3 years for UTI balanced fund had dropped due to recession. But, it has recovered immensely in the last one year and it’s giving 23.05% returns. Also, the return in the last five years is commendable for this fund. It seems to be a good investment scheme for conservative investors.

Best performing “Equity Funds” are:

UTI Opportunities Fund: The objective of the scheme is to generate capital appreciation by investing in equity shares and equity related instruments across different sectors as per market trends and economic factors. This scheme was launched on Jul, 20th 2005. The benchmark index is BSE 100. The top sector allocations are Oil and Gas, BFSI and Automobile. This fund has given 20.11% returns from its inception date. The fund manager is Mr. Harsha Upadhyaya.

UTI Equity Fund: The objective of the scheme is to generate capital appreciation by investing in equity shares and equity related instruments, convertible debentures, derivatives in India and also in overseas markets. This scheme was launched on April, 20th 1992. The benchmark index is BSE 100. The top sector allocations are Oil and Gas, BFSI, Information Technology. This fund has given 12.23% returns from its inception date. The fund manager is Mr. Anoop Bhaskar.

AMC-UTI Graph 2a

Source: Value Research Online  -  Data as of June 30, 2010

The annualized return for both the funds was fine during recession phase i.e in last three years. UTI opportunities fund outperformed UTI Equity Fund in returns in this phase and gave 3% (approx) higher returns.

Whereas, in the last one year when markets were recovering the returns for UTI Equity fund managed to generate 5% (approx) higher returns while comparing with UTI opportunities fund.

In the long run i.e for 5 years annualized return is mere 1% higher for UTI opportunities fund while comparing with UTI Equity Fund.

Best performing “Equity Linked Savings Scheme” are:

UTI Long Term Advantage Fund- Series I: The objective of the scheme is to provide capital appreciation along with income tax benefit. This scheme was launched on December, 21st 2006. The benchmark index is BSE 100. The top sector allocations are Oil and Gas, BFSI, Information Technology, Engineering. This fund has given 7.34% returns from its inception date. This is a close ended scheme. The fund manager is Mrs. Swati Kulkarni.

UTI Equity Tax Savings Plan: The objective of the scheme is to provide capital appreciation by investing in equities and equity linked securities along with income tax benefit. This scheme was launched on December, 15th 1999. The benchmark index is BSE 100. The top sector allocations are Oil and Gas, BFSI, Information Technology, Engineering. This fund has given 18.57% returns from its inception date. This is an open ended scheme. The fund manager is Mrs. Swati Kulkarni.

AMC-UTI Graph 3a

Source: Value Research Online  -  Data as of June 30, 2010

The annualized returns for both the funds showcase a mere 5% (approx) returns during recession phase (last three years). When markets recovered in last one year both the fund generated 25.5% (approx) returns. This conveys that both funds seem to give equivalent returns.

There are many UTI Mutual Fund schemes in each category other than the schemes discussed above. Be a well-versed investor. Perform your own research and analysis across various schemes considering personal goals and risk of investments. Then, take a sound decision of investing in any mutual fund schemes after consulting your financial planner.

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Written for InvestmentYogi by Hiral Thanawala, CFPCM

For details on latest top mutual funds, please click here

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