In the second part of the series, we take a look at the oldest mutual fund house in the country, the Unit Trust of India. UTI’s approach, reach and history make it unique. It manages assets worth Rs 42,548 crore (as on 31 Dec 2008) across various fund types and has 139 schemes.
Asset allocation: The break-up of assets worth Rs 20,073 crore for equity funds, balanced funds and monthly income plans.
A slight dip: UTI’s profit in 2007-8 dipped by about 2.3%, but with its plan to raise capital soon, things should start to look up.
Top 5 fund schemes: One of the oldest schemes from UTI, the Ulip still holds about 7% of the assets of the fund house.
Top 5 equity holdings: Reliance Industries accounts for 26% of the top five stocks that the AMC holds in its equity funds.
(The holdings are based on the total equity value and not the total AUM)
Fund house style:
The philosophy of the fund house has been to focus on safety and it has delivered above-average returns. Since Anup Bhaskar took over as CIO in 2006, a number of equity funds have been merged and the investment approach has changed and is now more skewed towards high risks.
If you had invested Rs 10,000 on 1 Jan 2000 in the UTI Equity fund (D), it would be worth Rs 23,478 on 28 Jan 2009, an absolute growth of 134.78%.
