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UTI - Equity Fund

Rating (source: Value Research)

NAV as on 16/09/2014 for

Rs. 92.281-1.9549 (2.12%)

This product is suitable for investors who are seeking*:

  • Long term capital growth
  • Investment in equity instruments of companies with good growth prospects
  • High risk  (Brown)

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note: Risk may be represented as:

  • (BLUE) investors understand that
    their principal will be at low risk
  • (YELLOW) investors understand that
    their principal will be at medium risk
  • (BROWN) investors understand that
    their principal will be at high risk
SMS: LNF to 5676756to get scheme details and NAV
  • Overview

  • Performance

  • Portfolio

  • Fund
    Manager
  • Scheme
    Documents
  • Load
    Structure
  • Management
    Commentary
Investment Objective

Investment will be made in stocks of those companies engaged in the following areas:

  • This Scheme primarily aims at securing for the unitholders capital appreciation by investing the funds of the scheme in equity shares and convertible and non-convertible bonds/ debenturesof companies with good growth prospects and money market instruments.
Investment Information
Fund type
Open ended Equity Fu
Date of Inception
18/05/1992
Investment Plan
Growth Option - Direct
Fund size (Rs.Cr)
3436.35 (as of 31st Aug 2014 )
Number of investors
730922 (as of 31st Aug 2014 )
Min. Investment
5000
Last Dividend
N.A.
Bonus
N.A.
Options Available

Growth option, Dividend option with Payout and Reinvestment

(SIP, SWP & Trigger)

Fund Managers
Fund Manager

Mr. Anoop Bhaskar is a B.Com graduate from the Delhi University and a MBA (Finance) from SIBM, Pune.

He has 23 years of work experience in equity research and fund management, of which 19 years are with asset management companies. Mr. Bhaskar has assumed the role of Head - Equity at UTI AMC since April, 2007.

Fund Manager's View
Who Should Invest
  1. A diviersified large cap oriented fund with conservative-style of funds management is suitable for all equity investors
Portfolio (as of Aug 2014)

Sectoral Breakdown
(% as compared to Benchmark)

Market Capitalisation (%)

Large Mid Small
82.00 13.00 5.00

View complete asset allocation

Scenario 1:
Mr.Singh has invested Rs.1,00,000 in this fund since December 2000. See how his funds have performed over time.

Scenario 2:
Mr.Singh has invested Rs.1,00,000 in this fund since December 2000. See how his funds have performed over time.

Sectoral Breakdown (as of 31st Aug 2014)
Asset Allocation (as of 31st Aug 2014)

Market Capitalisation (%)

Large Mid Small
82.00 13.00 5.00
Detailed Portfolio (as of 31st Aug 2014)
Equity % to NAV
IRB INFRASTRUCTURE DEVELOPERS LTD. 1.16
BHARTI AIRTEL LTD. 1.90
NESTLE INDIA LTD. 1.88
EICHER MOTORS LTD 1.76
INDUS IND BANK LTD. 1.54
BHARAT PETROLEUM CORPORATION LTD. 1.49
BHARAT FORGE LTD. 1.38
PUNJAB NATIONAL BANK 1.36
ULTRATECH CEMENT LTD. 1.35
POWER GRID CORPORATION OF INDIA LTD 1.28
NCA 1.61
FEDERAL BANK LTD. 1.24
BANK OF BARODA 1.91
OTH 23.99
SHREE CEMENT LTD. 3.09
ADANI PORTS AND SPECIAL ECONOMIC ZONE LTD 1.24
ICICI BANK LTD 5.42
MARUTI SUZUKI INDIA LTD. 2.66
INFOSYS LTD. 5.44
HERO MOTOCORP LTD. 1.92
RELIANCE INDUSTRIES LTD. 4.95
HDFC BANK LTD. 4.77
SUN PHARMACEUTICALS INDUSTRIES LTD. 3.61
ITC LTD. 2.86
LARSEN & TOUBRO LTD. 2.46
OIL & NATURAL GAS CORPORATION LTD. 1.95
STATE BANK OF INDIA 1.81
LUPIN LTD. 2.08
BOSCH LTD. 2.08
AXIS BANK LTD. 2.05
WIPRO LTD. 1.96
TATA CONSULTANCY SERVICES LTD. 5.80
Fund Manager - Biography
Fund Manager

Mr. Anoop Bhaskar

He has 23 years of work experience in equity research and fund management, of which 19 years are with asset management companies. Prior to joining UTI AMC, Mr. Bhaskar has worked with Sundaram Asset Management, Chennai as Head-Equity, Templeton Asset Management as Senior Research Analyst, Shriram Financial Services Ltd. as Manager-Investments, Brisk Financial Services and Cross Borders Finance & Project. Mr. Bhaskar has assumed the role of Head- Equity at UTI AMC since April, 2007.

Download Fund Documents
Minimum Investment Amount Rs. 5000/-
Period of Holding < 1 Year >= 1 Year
Entry Load Nil Nil
Exit Load(as % of NAV) 1% Nil
  • Market Overview
  • Portfolio Commentary
  • Market Outlook
  • Performance

Nifty registered an increase of 10% for the quarter, continuing of its choppy ride of CY 13 – Q1 -4%; Q2 +3%; Q3 -2% and Q4 +10%. The BSE 100 too reported a similar volatile movement through the year, ending +11% for the quarter. Banks, Metals and Capital goods sectors were the key drivers of the market during the quarter. Bank and Metal index reporting a +19% growth and Capital Goods Index a whopping 33%. Healthcare and FMCG, the foundation stones of the previous few years, were muted at +5% and -4% respectively for the quarter ending Dec'13. IT remained the only sector to report two consecutive quarter of double digit growth.

During the quarter, RBI in its mid quarter policy decided to hold interest rates, despite expectations of a 25bps increase. This move was, perhaps, welcomed by the sharp decline in fruits and vegetable prices, after shooting up during the months of October and November. As a result, banks continued their northward march during the quarter. Interestingly (and painfully for us), PSU Banks led the banking charge – PSU Bank Index reporting an increase of 19.7%. To put in perspective, the PSU Bank Index, ended the year -33% for a 1 year period and -3% for a 2 year period, justifying our longer term call to stay away from them.

The other notable events of the quarter were BJP's emphatic victories in MP and Rajasthan states and retaining Chattisgarh which also buoyed investor sentiment. With the Congress party returning 0-4 in the four states, the investor mood was one of relief and buoyancy. Expectations of BJP led "action" oriented Government at the Centre improved, at least in the eyes of the investors. This contributed to Capital Goods sector receiving a much needed shot, registering +33% upward move during the quarter. To put in perspective, CG Index reported a -17% decline for Q1, +1% for Q2 and -15% in Q3 prior to this strong up move in Q4. Clearly, hope prevailed.

Lastly, the much awaited tapering was announced in a more classical British "understated" manner rather than "loud" American style. The US Fed reported a $10 billion drop in purchase of market securities from January'14. It was quick to reassure the market that it planned to keep interest rates low. Boosted by strengthening economic data, fears of tapering were swept aside, the DJIA closed the year at an all-time high. The bears were in hiding during the long winter months in the US!

IT services continued to remain the largest sector with a weight of 18.28% as against 17.73% in the previous quarter. Banks were the second highest weight at 16.62%, followed by Energy with a weight of 13.19%. No major changes in the sector allocation were made during the quarter. The fund continued to hold between 7-12% of the sector holdings in small and mid caps names, giving it a boost during the quarter.

During the quarter, the fund increased its weight of small and mid caps to 15%, as against 10% at the end of the June quarter. It also continued to hold its PSU holdings, which reported impressive gains during the previous quarter – Bank of Baroda, Punjab National Bank, ONGC to name a few. Its small cap exposure through NIIT Technologies and Sun Pharma Advanced Research also contributed during the quarter.

During the quarter, the fund's three largest additions were ICICI Bank, Bharat Forge and Bharat Petroleum, while Pfizer and Bajaj Auto were pruned /exited. The bumper dividend declaration and merger of Pfizer and Wyeth gave us the much needed "pop", we exited above Rs.1, 640 levels (incl dividend of Rs.360). Bajaj Auto was sold to add to our weight in Hero Motocorp.

The Oct-Dec rally has been boosted by increasing expectations of a change of hands at the Centre post the next General Elections. If given a vote, the stock market, it appears, has already voted a BJP victory. While, hope is an essential ingredient of any bull market, reality checks are needed from forming bubbles. The General elections are still five months away. The current state elections were held in states which account for less than 110 odd Lok Sabha seats (572 seats overall). BJP still does not feature among the top two political parties in over 150 seats (T N, AP, Kerala, West Bengal and Orissa). Alliances will still be needed to form the Government at the Centre, BJP unfortunately has very few friends willing to come to any party it hosts! For other parties to gravitate towards BJP would be a post election phenomenon and would require BJP to win close to or over 200 seats, with a winning margin of over 60% of the seats contested, a tall order, though not an impossibility.

For the markets, the belief of a BJP led Government at the Centre currently equates to a swift and strong revival of the economy. Which is reflected in the whopping increases registered by the PSU banks and Capital goods sectors, the two most impacted by the sluggish downward spiraling economy. Both these are "flies waiting for a windscreen" to crash into. Our more bearish outlook is based on the current broken down investment cycle which needs a period of cleansing – for banks to write-off; for companies to sell assets, in general the stage of "constructive destruction", the final stage of bottoming of the economy. This cycle was evident in Cy 01-03, a remarkable period for investors with a barely a blip on the indices, as companies who set their house in order by selling disparate businesses or settling with banks, were rewarded by re-rating by investors. On the bank side over Rs.6.36 lakh crores of restructured assets need a "closure", a settlement which after the recent RBI diktat for promoters to bring in at least 25% of the value of the CDR restructuring as their share would be an interesting development. Till the cycle of asset sales and bank CDR is not underway, we would not be inclined to board the roller coaster ride featuring PSU banks and Capital goods sectors.

Hence, our portfolio is positioned for a gradual and sluggish recovery over the next few quarters. In this scenario IT services becomes the new "defensive" and with the developed markets sustaining the growth momentum, it could also surprise investor's with growth as well. Our call on cement, remains a crucial one, we will hold till mid March, the period by which traditionally cement prices strengthen, if not, we would trim aggressively. Our auto exposure could be played out through the ancillaries, also mid caps and thus currently in flavor.

Based on the above thought process it should be evident that we are "hoping" for a consolidation, albeit a "healthy" correction. We would use this opportunity to add to our banking and automobile sector weights. This would be funded through paring of consumer staples and energy sector within the portfolio. We would prefer to add the smaller names as compared to the larger peers while making any addition to the portfolio. Overall, the sector weights may not see too many changes from the previous quarter levels.

The fund outperformed the benchmark for the quarter and the year, reporting a growth of 9.48% and 8.23% for the quarter and the year respectively. On a relative basis, the fund was ranked 21/32 for the quarter and 8/32 for the year. It was ranked 3/32 on a 3 yr basis and 7/31 on a 5 year basis within its peer group.

Sector Movement (Quarterly)

Sector Dec-12 Mar-13 Jun-13 Sep-13 Dec-13
IT 7.80% 11.47% 12.32% 17.73% 18.28%
Financial Services 24.60% 22.07% 20.07% 15.20% 16.62%
Energy 12.06% 14.26% 13.81% 13.46% 13.19%
Consumer Goods 15.73% 14.33% 14.10% 12.81% 11.93%
Pharmaceuticals 9.85% 10.68% 9.67% 10.51% 9.65%
Automobile 7.76% 8.45% 8.84% 8.68% 8.85%


Stock Movement (Selective)

Stock Up / Down compared to previous quarter position
ICICI Bank Ltd.
Bharat Forge Ltd.
Bajaj Auto Ltd.
Nestle India Ltd
Pfizer Ltd. (Exited)
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