UTI MasterShare Unit Fund

UTI MasterShare Unit Scheme is one of the better performing funds in its category. This fund is managed by an able manager Swati Kulkarni. Swati has an exemplary track record and ever since she took over the fund’s lack-lustre performance has taken an upward journey. The fund has performed for over 2.5 decades now. This is a good fund to hold on to for the long term.

Where does UTI MasterShare Unit Fund invest your money?

UTI MasterShare Unit Scheme is a large cap fund which means most of your money will be invested in stocks of 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. UTI MasterShare Unit Scheme has 13% exposure to mid size companies and 0.05% exposure to small size companies.

Suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase

 

Not Suitable for?
  • Creating wealth
  • Lifestyle needs
How much to invest?

 

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
How has UTI MasterShare Unit Scheme performed in the past?

If you had invested Rs 1 lakh when the fund was launched at Oct 1986, your value of investments would be around Rs 5.2 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.6 lakhs. The performance has been better or similar to other large cap mutual funds. The fund has been giving at around 9.5% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in UTI MasterShare Unit Scheme through SIP for the past 5 years today you would have around Rs 7.4 lakhs.

How will UTI MasterShare Unit Scheme 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%. 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 twice 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 MasterShare Unit Scheme is 1.88%. 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 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 mutual fund are absolutely tax free, provided you do not withdraw within 1 year. UTI MasterShare Unit Schemedoes not qualify for sec 80C ELSS benefits.

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