Financial Daily from THE HINDU group of publications
Sunday, Mar 13, 2005
Financial Daily from THE HINDU group of publications Sunday, Mar 13, 2005 |
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Investment World
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Mutual Funds Markets - Mutual Funds UTI Growth & Value Fund: Hold Shanthi Venkataraman
It has a fairly good track record over three-year and five-year periods. However, as its management has undergone a change only recently, its past record may not be entirely relevant. Over a one-year period, the fund's performance has been rather uninspiring. With a return of about 25 per cent, its performance lags behind several diversified equity funds. Top-performing diversified equity funds such as HDFC Top 200 and HSBC Equity have outpaced the fund by a significant ten percentage points, with returns of about 35 per cent. The fund's relative underperformance may be partly explained by the large cash levels that it held in January; cash/cash equivalents then accounted for about 40 per cent of its assets. The cash was held in order to meet possible redemption pressure, following the fund's decision to wind up its bonus option. As a result, UTI Growth & Value is likely to have missed out on some of the action over the past three months — a period when most funds have seen a significant boost to their returns. Suitability: UTI Growth and Value allocates about 70 per cent of its assets to large-cap stocks and the rest to mid-caps. The fund carries the normal risks that are associated with investing in typical diversified equity funds. Investors may stay with the fund, as long as it does not form a part of their core holdings. Portfolio overview: UTI Growth & Value has a well-diversified portfolio. The fund invests in about 30 stocks, with holdings in individual stocks restricted to about five per cent of assets.
The fund is bullish on power equipment and pharmaceutical sectors. Its top three sectors — power, pharmaceuticals and finance — accounted for about 30 per cent of its assets in January. The top ten holdings comprise predominantly large-cap stocks. Mid-caps that figure prominently in its portfolio include Crompton Greaves, Thermax, Aurobindo Pharma, Tube Investments and Lupin. Fund facts: The fund was launched in October 1999. It had an asset base of about Rs 300 crore as on January 31, 2005. The minimum investment amount is Rs 5,000. The fund manager is Mr Sanjay Sinha.
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