UTI Wealth Builder Fund Series II

UTI Wealth Builder Fund Series II is managed by Lalit Nambiar. The scheme seeks to achieve long term capital appreciation through investments in a diversified portfolio of equity and equity related instruments along with Gold ETFs and debt/money market instruments. If you have already invested in this scheme keep a close watch on its performance. 

Where does UTI Wealth Builder Fund Series II invest your money?

UTI Wealth Builder Fund Series II is a hybrid fund which invests your money in both equity securities and commodities. It has more than 66.75% exposure to equity and 23% exposure to commodities,1.61% to debt and close to 8.64% exposure to cash and cash equivalents. Its equity portion has large cap bias which means most of your money will be invested in stocks of large sized companies. UTI Wealth Builder Fund Series II fund has 75.04% exposure to large cap companies 22.88% exposure to mid sized companies and 2.01% exposure to small sized companies.

Its commodity portion has allocation in gold ETFs. It currently holds close to 8.64% of its assets in cash and equivalents such as T-bills, banker’s acceptance and money market instruments.  

Suitable for what?
  • Creation of wealth
  • Lifestyle needs
Not suitable for what?
  • Child’s education
  • Child’s Marriage
  • Planning for retirement
  • Home Purchase
  • Short term needs
How has UTI Wealth Builder Fund Series II performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Nov 2008, your value of investments would be around Rs 2.22 lakhs. The performance has been similar to other funds in this category. The fund has been giving around 19% returns for those who have stayed invested since inception.

Assume you had invested Rs 10,000 every month in UTI Wealth Builder Fund Series II through SIP since inception today you would have around Rs 6.41lakhs. 

How will UTI Wealth Builder Fund Series II 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.

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 Wealth Builder Fund Series II is 2.21%. 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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