UTI Equity Fund

UTI Equity Fund is one of the better performing funds in its category. This fund is managed by an expert manager Anoop Bhaskar. Anoop has an exemplary track record. The fund has been consistent in its performance from 2008. This is a good fund to hold on to for the long term.

Where does UTI Equity Fund invest your money?

UTI Equity Fund is a large cap fund which means most of your money will be invested in giant and large companies. And just to give kicker returns the fund has some exposure in mid cap companies as well. Large cap companies tend to be stable compared to mid cap and small cap companies. This fund invests a whopping 84% in large cap stocks, about 12.5% in mid cap stocks and 4.4% in small cap stocks. It sticks to safe bets in small and mid cap companies.

Suitable for what?
  • Child's marriage
  • Child's education
  • Retirement
  • Home purchase
Not Suitable
  • Creation of quick wealth
  • Short term needs
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 500 per month. You can make UTI Equity Fund as part of your core portfolio. Core portfolio is investments that are made for your basic goals and makes up about 70% of your investment portfolio. Do not make the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio.

Our recommendation for fresh investment
Recommended
Our recommendation for existing investment
Recommended
How has UTI Equity Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched at May 1992, your value of investments would be around Rs 6.18 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.5 lakhs. The performance has been better or similar to other large cap mutual funds. The fund has been giving at around 8.62% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in UTI Equity Fund through SIP for the past 5 years today you would have around Rs 7.44 lakhs.

How will UTI Equity Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to de well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid size companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

When to review?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of UTI Equity Fund is 1.90%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio. 

When to enter?

Now! There is no good time to invest rather than now. Do not try to time the market and especially so if it is an SIP. Do not follow news channel and other experts to know the right time to invest. In the long run it does not matter. Mutual fund is unlike a stock where you are looking at the right price. This job will be done by the mutual fund scheme manager. If you have planned your investments and decided on the amount you want to invest do not think further, just go ahead.

When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year. UTI Equity Fund does not qualify for sec 80C ELSS benefits.

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