Monday, July 6, 2009

UTI Mutual Fund Declare Dividend Of Equity Fund - July 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 67978.19 crore at the end of June 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 36.78 per unit as on 3 July 2009.

Portfolio: The total net assets of the scheme increased by Rs 261.77 crore to Rs 1454.50 crore in May 2009.

UTI Equity Fund (G) took fresh exposure to eleven stocks in May 2009. The scheme has purchased 9.40 lakh units (1.12%) of Steel Authority of India, 8.97 lakh units (0.87%) of IRB Infrastructure Developers and 2.70 lakh units (0.86%) of Bharat Petroleum Corporation among others.

The scheme exited completely from LIC Housing Finance by selling 1.72 lakh units (0.53%), Century Textiles & Industries by selling 1.43 lakh units (0.28%) and Bajaj Financial services by selling 66355 units (0.12%) among others in May 2009.

Sector-wise, the scheme took fresh exposure to Domestic Appliances at 0.01% in May 2009. Sector-wise, the scheme exited completely from Finance & Investments at 0.12% in May 2009.

The scheme had highest exposure to State Bank of India with 5.13 lakh units (6.60% of portfolio size) followed by Reliance Industries with 3.08 lakh units (4.81%), Axis Bank with 6.10 lakh units (3.27%) and Oil & Natural Gas Corporation with 3.58 lakh units (2.88%) among others in May 2009.

It reduced its exposure from Nestle India by selling 90000 units to 2.42 lakh units (by 1.88%), ITC by selling 5.00 lakh units to 19.31 lakh units (1.41%), Tata Tea by selling 1.09 lakh units to 1.96 lakh units (0.80%) and Gujarat Industries Power by selling 13.00 lakh units to 46873 units (0.65%) among others in May 2009.

Sector-wise, the scheme had highest exposure to Banks-Private Sector at 10.27% (from 9.00% in April 2009), followed by Banks-Public Sector at 8.36% (5.54%), Refineries at 7.32% (3.75%) and Food-Processing-MNC at 4.77% (6.98%) among others in May 2009.

Sector wise, the scheme had reduced exposure from Food-Processing-MNC to 4.77% (by 2.21%), Cigarettes to 2.44% (by 1.41%), Tea to 0.94% (by 0.80%) and Finance-Housing to 1.00% (by 0.61%) among others in May 2009.

Performance: The performance of scheme is benchmarked against BSE 100. The scheme has underperformed the benchmark index over most of the time periods.

The scheme has posted negative returns of 0.94% outperforming the BSE 100 that fell 1.43% over 1 month period ended 3 July 2009.

Over 3 months period, the scheme advanced by 35.12% underperforming the benchmark index that gained 48.47%. It rose 11.49% underperforming the benchmark index that gained 11.80% over 1 year period.

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