The Hindu Business Line : UTI Growth and Value

A BLEND of value and growth stocks has the potential to smoothen the ride during roller-coaster market phases. A steep fall in growth stocks during a market decline is likely to be offset by the dividend-yielding capability of value stocks. Thus, a combination of the two may provide steady returns even during a downturn. This is the idea behind this fund.

We take a look at how UTI Mutual Fund managed its Growth & Value portfolio for the quarter-ended September 2005. UTI Growth & Value scheme is an open-ended equity fund, which seeks capital appreciation through opportunities in undervalued and growth stocks.

UTI Growth & Value had about 35 stocks in its portfolio as of September. Over the quarter, the fund had enlarged its exposure to industrial manufacturing, financial services and consumer goods. Weights given to pharma, energy and IT remained largely unchanged. The top ten holdings were rejigged during the period. Pharma stocks Wockhardt, Nicholas Piramal and Lupin entered this slot in September, replacing Infosys, Patni Computer Systems and Hindustan Petroleum. Tube Investments and Thermax remained the top two holdings and accounted for 12 per cent of the total asset value.

In the financial services sector, Indian Overseas Bank made an exit, even as Infrastructure Development Finance Company found favour. The fund also accumulated the stock of Karnataka Bank. The number of shares held in the bank increased by 25 per cent. Hero Honda Motors was a new entrant to the fund's auto space. Stocks of Mahindra & Mahindra were also accumulated; Tata Motors endured some trimming.

Zee Telefilms, Satnam Overseas and Gujarat Alkalies were added to the fund's portfolio over the quarter.

UTI Growth & Value Fund was launched in 1999 and is managed by Mr Sanjay Sinha. The fund size as of September 2005 stood at Rs 185 crore.

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