• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Shanthi Venkataraman

INVESTORS can hold UTI Growth & Value Fund. After a difficult period in 2000 and 2001, the fund turned in a good performance in 2002 and 2003. It also performed well over the past year, delivering returns of about 58 per cent and outpacing its benchmark, the BSE Sensex, by more than 20 percentage points.

It also comfortably outperformed broader indices such as the S&P CNX 500. It, however, lacks a strong five-year track record. Moreover, the fund, which was previously managed by IL&FS Mutual Fund, was taken over recently by UTI Mutual Fund.

Investors would have to watch out for changes in fund management style, which could have a bearing on performance. As such, it may be better to evaluate its performance over at least a one-year period before considering fresh exposures.

Suitability: The fund intends to target a portfolio mix of about 70 per cent in large-cap stocks and the balance in mid-cap stocks. This lowers the risks associated with the fund as compared to one that invests heavily in mid-caps. The risk profile would be on par with that of a diversified equity fund.

The fund is to also limit the size of its portfolio to about 35 stocks, which would ensure greater manoeuvrability of the portfolio.

The fund is worth adding to one's portfolio. First-time investors may, however, take exposures to funds with a good 5-year track record.

Portfolio: The top ten holdings comprise strictly large-cap stocks. The portfolio does, however, continue to feature prominent mid-caps such as IPCL, Crompton Greaves, I-flex solutions, Jindal Steel and Amtek Auto.

Mid-cap stocks now account for about half the portfolio. The portfolio turnover is about 35 per cent.

The assets under management have declined from Rs 283 crore in June to Rs 275 crore in July, despite an increase in NAV.

Fund facts: UTI Growth & Value fund was launched in October 1999 as IL&FS Growth & Value Fund. The minimum amount is Rs 5,000.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Investment Quiz

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line