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UTI - Opportunities Fund

Rating (source: Value Research)

NAV as on 24/11/2014 for

Rs. 49.3110.2822 (0.57%)

This product is suitable for investors who are seeking*:

  • Long term capital growth
  • Investment in equity instruments by capitalizing on opportunities arising in the market dynamically
  • 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 seeks to generate capital appreciation and/or income distribution by investing the funds of the scheme in equity shares and equity-related instruments. The main focus of this scheme is to capitalize on opportunities arising in the market by responding to the dynamically changing Indian economy by moving its investments amongst different sectors as prevailing trends change.
Investment Information
Fund type
Open ended
Date of Inception
20/07/2005
Investment Plan
Growth Option - Direct
Fund size (Rs.Cr)
5124.19 (as of 31st Oct 2014 )
Number of investors
542422 (as of 31st Oct 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.

Know More
Who Should Invest
  1. A diviersified large cap oriented fund with Aggressive-style of funds management is suitable for regular equity investors
Portfolio (as of Aug 2014)

Sectoral Breakdown
(% as compared to Benchmark)

Market Capitalisation (%)

Large Mid Small
86.00 14.00 0.00

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
86.00 14.00 0.00
Detailed Portfolio (as of 31st Aug 2014)
Equity % to NAV
TECH MAHINDRA LTD 1.64
LUPIN LTD. 2.24
ULTRATECH CEMENT LTD. 2.15
TITAN COMPANY LTD. 2.11
CRISIL LTD 3.19
ADANI PORTS AND SPECIAL ECONOMIC ZONE LTD 2.10
BHARTI AIRTEL LTD. 1.90
CIPLA LTD. 1.57
NESTLE INDIA LTD. 1.48
BHARAT FORGE LTD. 1.32
PUNJAB NATIONAL BANK 1.32
HATHWAY CABLE & DATACOM LTD. 1.12
APOLLO TYRES LTD. 1.07
NCA 2.46
MRF LTD. 2.52
OTH 8.01
INFOSYS LTD. 6.40
SHREE CEMENT LTD. 2.55
HERO MOTOCORP LTD. 2.94
ICICI BANK LTD 6.87
HDFC BANK LTD. 5.93
TATA CONSULTANCY SERVICES LTD. 5.62
MARUTI SUZUKI INDIA LTD. 4.34
RELIANCE INDUSTRIES LTD. 4.32
LARSEN & TOUBRO LTD. 4.19
SESA STERLITE LTD. 2.22
SUN PHARMACEUTICALS INDUSTRIES LTD. 3.19
ITC LTD. 3.14
STATE BANK OF INDIA 2.80
OIL & NATURAL GAS CORPORATION LTD. 2.73
AXIS BANK LTD. 3.97
TATA MOTORS LTD. 2.59
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!

On a sectoral basis, IT services remained the largest weight at 20.22%, as against 20.33% in the previous quarter. Banks were the second largest sector at 18.97%, as against 18.47% in the previous sector. Consumer goods weight was further brought down to 11.99% as against 13.29%. Weight of Autos was increased from 8.21% to 10.05% over the previous quarter.

The key thought process during the quarter was to position the fund for a gradual, slow recovery which would be patchy rather than "blue sunshine across the horizon" type. Automobiles, especially M/HCV and passenger car segments have been reporting a decline during CY 13, in fact for MHCV segment, the current slowdown is the longest in the last thirty years with 20 months of y-o-y decline, and the previous deepest decline lasted 18 months. As a result, recovery in this segment should be expected in the earlier stage of the economic recovery. This is being addressed through two auto ancillaries – Bosch and Bharat Forge, both are key suppliers with a technological edge. We also started buying Tata Motors during the quarter, which is more a proxy for global luxury cars and SUVs through JLR, yet the Indian business value as per our calculations is lower than FY 01, when it reeled under a similar double blow of falling MHCV and passenger car business. We also increased our weight in Maruti, as Abenomics , a stated policy continued to weaken the Japanese Yen, giving the company much needed relief on the margin front during a period of weak domestic volumes. Cement stocks continued to put pressure on the fund's performance, which we are bravely taking on our chin for the moment. While we have pared the weight of building material in our portfolio over the last four quarters, compared to our peers we remained robustly overweight. Our hypothesis of playing the investment cycle through cement is currently – "stirred not shaken" – better balance sheet, room for operating leverage without any capital dilution, on the positive side; low capacity utilization and tepid consumer prices on the negative. Given that September quarter results reported the lowest EBIDTA in last four years, we have not thrown in the towel on the sector…yet!

On the stock front, Tata Motors, ICICI Bank and Bosch were the three largest additions during the quarter; these were financed through paring / exit of HDFC, Exide and ACC. On the stocks exited, Exide we exited, as we remained unconvinced on the management's strategy and explanation on margins vis-à-vis its nearest competitor. HDFC, would be exited during the next month, as the retail housing loan business margins have got squeezed by the entry of banks and loans to builder/developers now account for 30% of the loan book and carry a much higher risk for which no corresponding provision coverage is made. With the scenario for residential housing in metros experiencing a marked slowdown, the builder/developer segment could come under increasing stress and impair the quality of earnings, for which the group has been getting premium valuations from investors.

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 Sector 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.

UTI Opportunities Fund, reported a return of 7.52% for the quarter as against the BSE 100's 7.18%, a marginal outperformance (a welcome one, after two quarters of underperformance, though!). Return for the year at 6.38% also reported a miniscule outperformance versus the Benchmark. The fund, on a relative basis reported a rank of 23 out of 25 for the quarter and 13 out of 25 for the year. The 3 and 5 year ranking were at 3 and 5 out of 25 and 23 schemes respectively.

Sector Movement (Quarterly)

Sector Dec-12 Mar-13 Jun-13 Sep-13 Dec-13
IT 7.22% 10.25% 11.63% 20.33% 20.22%
Financial Services 27.68% 27.67% 25.11% 18.47% 18.97%
Consumer Goods 16.55% 15.71% 14.52% 13.29% 11.99%
Automobile 6.59% 7.17% 8.31% 8.21% 10.05%
Cement & Cement Products 10.59% 10.02% 9.34% 9.01% 7.88%
Energy 8.71% 9.72% 7.91% 7.82% 7.76%


Stock Movement (Selective)

Stock Up / Down compared to previous quarter position
ICICI Bank Ltd.
HCL Technologies Ltd.
ACC Ltd.
HDFC Ltd
Grasim Industries Ltd.
Just Dial Ltd. (Exited)
Exide Industries Ltd. (Exited)
Bosch Ltd. New
TATA Motors Ltd. New
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