UTI Transport and Logistics Fund

UTI Transport and Logistics Fund is managed by Swati Kulkarni. UTI Transport and Logistics Fund’s investment Objective is “capital appreciation “through investments in stocks of the companies engaged in the transportation and logistics sector. New investors can skip this one for a better performing fund in this category.

Where does UTI Transport and Logistics Fund invest your money?

UTI Transport and Logistics Fund is a diversified sector fund which means most of your money will be invested in stocks of pharmaceutical companies. Large cap companies tend to be stable compared to mid cap and small cap companies. And just to give kicker returns the fund has exposure in mid cap companies as well. UTI Transport and Logistics Fund has 38.59% exposure to large sized companies and 31.75% exposure to mid sized companies and 29.66% exposure to small sized companies.

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not suitable for what?
  • Child’s education
  • Child’s Marriage
  • Planning for retirement
  • Home Purchase
How has UTI Transport and Logistics Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in April 2008, your value of investments would be around Rs 3.10 lakhs. The fund's performance has been similar to other funds in this category. It has been giving around 16% returns for investors who have stayed invested for 5 years 

Assume you had invested Rs 10,000 every month in UTI Transport and Logistics Fund through SIP since inception today you would have around Rs 9.35 lakhs.

How will UTI Transport and Logistics 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 do well. When the companies do well their stock prices follow 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 sized 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.

How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 500 per month. Do not make UTI Transport and Logistics 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. UTI Transport and Logistics Fund can be part of your satellite 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
Not Recommended
Our recommendation for existing investment
Recommended
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.

How frequently you need to monitor 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 are the charges applicable?

Exit load of 1% is charged if units are redeemed within a year from the date of allotment. No exit load applies for units withdrawn post one year. Expense ratio of UTI Transport and Logistics Fund is 2.50%. 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 an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year.

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