High on energy

MONEY TODAY-Plexus Management evaluate the UTI Energy Fund.

     Print Edition: November 1, 2007


Offer period: Till 31 October

Scheme type: Open-ended equity fund focused on energy sector

Minimum investment and subscription: Rs 5,000, unit price: Rs 10

Loads: Entry load: 2.25%, Exit load: 1% if exited within six months

Options: Growth and dividend (payout and reinvestment)

Investor grievances: Suman Mukhopadhya. Tel: (033)22435924. E-mail: suman.mukhopadhayay@uti.co.in


Objective: Investment will be made in stocks of companies engaged in the area of petroleum, power generation, storage and transmission of energy, manufacturing of required equipment and related areas.Also in companies involved in financing these businesses.

Benchmark: UTI Energy Index

Fund manager: Gautami Desai

Asset allocation: 90% equity and equity linked, 10% debt and cash

Comparable existing scheme:

Fund name: Reliance Diversified Power Sector
NAV (Rs): 59.08
1-yr return(%): 95.20
Since inception(%): 71.76


Idea distiller: An energy deficient economy like ours is likely to have a huge investment push. That the energy sector would prosper in the coming years is an acknowledged fact.

Fund house report: UTI AMC manages assets worth over Rs 45,000 crore across all investor groups.

Track record: Returns profile - 3/5, risk profile - 3/5

Fund manager report: Returns profile - 3/5, returns profile - 4/5

Scheme DNA: Four fundamentals of the fund scheme

Unique idea - high

Return possibility - high

Risk - medium

Operability/Complexity - high


Who should apply: Investors willing to take a calculated bet on the energy sector and looking for diversification.

Remember: Sector funds are volatile and risky; invest if you have the risk appetite.The energy sector offers substantial gains in the long term.

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