Tuesday, September 13, 2016

UTI Opportunities Fund

Invest UTI Opportunities Fund Online

The scheme seeks to generate capital appreciation and/ or income distribution by investing the funds of the scheme in equity shares and equity related instruments. The focus of the scheme is to capitalize on opportunities arising in the market by responding to the dynamically changing Indian economy by moving its investments amongst different sectors as prevailing trends change.

 

'Opportunities' funds usually tend to be a risky category, taking on overweight sector- or stock-specific bets. But this particular fund is quite conservatively managed, despite its label, with a well-diversified portfolio both with sectors and stocks. Having managed to beat its category and benchmark quite convincingly until 2015, the fund has struggled a bit in the last one year, which resulted in its ratings slipping from the long-term rating of five stars to four and even three stars in recent months. With a broader mandate than other large-cap peers, it invests 80 per cent of its assets in large caps, with 15 per cent or higher allocation to mid caps. Tiny caps - stocks of less than Rs1,000 crore market cap - are avoided. It balances growth and value styles, without going overboard on either.

 

While the fund's five- and seven-year returns are a strong 3-4 percentage points ahead of the benchmark, the margin has thinned over one and three years. The fund has specifically struggled in 2015. It has been quite good at containing downside in bear markets though, as shown by the returns in 2008 and 2011. The fund's return record since launch shows a CAGR of 15.2 per cent. It tries to identify 35-40 companies which can deliver strong earnings growth or earnings surprises.

Swati Kulkarni has taken over from Anoop Bhaskar as the fund manager in early 2016.

The fund's good long-term record makes it a reasonable holding, despite the less impressive show in the last one year.



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