Money Today-Plexus Management new fund evaluationUTI Wealth Builder Fund Series II
Offer open: Till 19 November
Scheme type: Open-ended equity diversified
Minimum investment: Rs 5,000; unit price: Rs 10
Loads: Entry load: 2.25%; Exit load: 1% (within 1 year)
Options: Growth and dividend
Investor grievances: K.P. Ghosh; Tel: 022-66786666; Fax: 022-26523031 E-mail: firstname.lastname@example.org
Objective: To achieve long-term capital appreciation by investing mainly in a diversified portfolio of equity and equity-related instruments, along with investments in gold ETFs, and debt and money market instruments.
Benchmark: BSE 100, Crisil Bond Fund Index and the price of gold.
Fund manager: Harsha Upadhaya
65-100% Equity & equityrelated securities
0-35% Gold ETFS
0-35% Debt & money market instruments
Comparable existing schemes:
Fund Name: IDFC Classic Equity Fund
NAV* (Rs): 13.11
1-year (%): -37.70
3-year (%): 8.62
*NAV as on 21 October;. Source: NAVIndia
Idea distiller:The fund is trying to cover all options—equities, gold and debt. It lacks clarity and is apparently hoping that at least one of these options will click in the current uncertain scenario.
Fund house report: UTI mutual fund manages assets worth Rs 44,623 crore across 149 schemes (as on 30 September 2008).
Returns profile: 3/5
Risk profile: 4/5
Fund manager’s report: Performance of fund manager
Returns profile: 4/5
Risk profile: 4/5
Scheme DNA: Four fundamentals of the fund scheme
Unique idea: Low
Return possibility: Medium
Who should apply: If you are a balanced fund investor and want an exposure to gold in your debt allocation, then this could be the fund for you.
Comments: The fund manager has been handling the UTI Wealth Builder 1 quite well, so it would have made more sense for the fund house to have converted the scheme into an open-ended one. In these troubled times, it is better for investors to stick to proven fund schemes rather than invest in new ones.