Wednesday, May 6, 2009

UTI Equity Fund Under Performs The Beyond The Majority Period - May 06, 2009

Background: UTI Mutual Fund is managed by UTI Assets Management Company Private Limited has come into existence with effect from 1st Feb.2003 who has been appointed by the UTI Trustee Company Pvt. Ltd. for managing the scheme of UTI Mutual and the scheme transferred from UTI Mutual Fund. Three leading public sector banks-Bank of Baroda, Punjab National Bank and life Insurance Corporation of India are sponsors of the UTI Mutual Fund. The fund house manages assets worth Rs 54489.99crore at the end of April 2009.

UTI Equity Fund (G) is an open-ended scheme launched in April 1992, with an objective of investing at least 80% of its funds in equity and equity related instrument with medium to high risk profile and up to 20% in debt and money market instruments with low to medium risk profile. The minimum investment amount is Rs 5000 and in multiples of Rs 1000 thereafter. The unit NAV of the scheme was Rs 30.46 as on 05 May 2009.

Portfolio: The total net assets of the scheme increased by Rs 68.82 crore to Rs 1121.19 crore in March 2009.

UTI Equity Fund (G) took no fresh exposure to any stocks in March 2009.

The scheme exited completely from Reliance Communication at 0.27%, Infrastructure Development Finance Company at 0.18%, Nava Bharat Ventures at 0.17% and Canara Bank at 0.03% in March 2009.

Sector-wise, the scheme took no fresh exposure in March 2009.

Sector-wise, the scheme exited completely from Diversified - Medium / Small at 0.17% in March 2009.

The scheme had highest exposure to Nestle India with 3.33 lakh units (4.63% of Portfolio) followed by ITC with 24.31 lakh units (4.01%), State Bank of India with 3.64 lakh units (3.47%) and Hero Honda Motors with 3.21 lakh units (3.08%) among others in March 2009.

It reduced its exposure to Housing Development Finance Corporation by selling 92000 units to 83080 units (by 1.07%), Nestle India by selling 49774 units to 3.33 lakh units (by 0.81%), State Bank of India by selling 70223 units to 3.64 lakh units (by 0.76%) and Bosch by selling 15000 units to 70977 units (by 0.55%) among others in March 2009.

Sector-wise, the scheme had highest exposure to Banks - Private Sector at 7.66% (7.90% in February 2009), followed by Food - Processing – MNC at 7.34% (7.98%), Banks - Public Sector at 4.87% (5.50%) and Cigarettes at 4.01% (4.23%) among others in March 2009.

Sector wise, the scheme had reduced exposure in Finance – Housing to 1.52% (by 1.05%), Food - Processing – MNC to 7.34% (by 0.64%), Banks - Public Sector to 4.87% (by 0.63%) and Auto Ancillaries to 1.95% (by 0.55%) among others in March 2009.

Performance: The scheme underperformed the Sensex over most of the time periods.

Over three-month period ended as on 05 May 2009, the scheme posted returns of 21.40% underperforming the Sensex that posted returns of 33.44%. Over 6 month period, the scheme's returns surge by 12.73% underperforming the Sensex that rose 19.87%.

The returns of the scheme over one year period fell 25.82% outperforming the Sensex that plunged by 30.64%.

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