UTI Infrastructure Fund

UTI Infrastructure fund is being managed by Sanjay Ramdas Dongre. Sanjay has 19 years experience in this domain and took over in 2008. The infrastructure sector in general has given mixed performance in the last 3 years. Yet in particular this fund’s performance has been below the category average. The fund’s performance has been unconvincing and it has been a laggard. If you have invested in this fund, exit now to invest in a better performing fund. If you are a new investor you can safely skip this one. Investing in sector funds is risky.

Where does UTI Infrastructure fund invest your money?

UTI Infrastructure fund is a sectoral multi cap fund which means most of your money is invested in giant, large, medium and small size companies in the infrastructure industry which include Telecom, Power, Port, Air, Roads, Railways, Shipping and other Utility Services Providers. This fund has 72% exposure to large cap stocks, 23% exposure to medium cap stocks and 5% exposure to small cap stocks. Large cap companies tend to be stable compared to mid cap and small cap companies. Yet exposure to mid cap companies is not totally avoided due to prospects of kicker returns.

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not suitable for what?
  • Child's education
  • Child's marriage
  • Buying house
  • Retirement planning
Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment.
Not Recommended
How has UTI Infrastructure fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Sep 2004 the value of your investments would be just around Rs 2.82 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 77 thousand. The performance has been worse than other mutual funds in this category. The fund has been giving at around -5% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in UTI Infrastructure through SIP for the past 5 years today you would have just around Rs 5.92 lakhs.

When to review the performance?

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 Infrastructure Fund is 1.91%. 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.

What are the tax implications?

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

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