From today I am beginning with a new series on Personal Finance and here is the 1st one on investments in Mutual Funds by Bankim Bhagwat.
If anyone has some specific questions he could ask Bankim about it at [email protected]
I believe that the present economic scenario caused by a worldwide slow down and upheavals in the Indian Money Market are only of temporary nature. Based on the economic forecasts released by Central Statistical Organization the Indian economy is expected to grow at 7.00 per cent in the current fiscal despite the global economic crisis. Thus, the future prospects appear to be positive and present you with an investment opportunity now.
Keeping the above scenario in mind one can create an investment portfolio to one’s risk appetite and return expectations. It may be advisable to allocate some portion of your investments to equities as an asset class and thereby partake and participate, to benefit from our growing economy.
I will highlight some of the Investment Options available with UTI which has enabled many investors structure a financial plan for their financial goals and could therefore be a part of your investment portfolio.
As you are aware, UTI has transformed itself into one of the best Asset Managers of the country. UTI Mutual Fund has a highly qualified and professional fund management team to take care of the investor’s investments. UTI Asset Management Company Ltd. has been awarded the “Best Equity Fund House of the Year” by ICRA* and as the “Best Debt Fund House” by Outlook Money and NDTV Profit* recently for its best Fund Performance. This is a reflection of the commitment to provide investors with the best possible wealth creation solutions. These awards from independent and renowned agencies in the Indian Financial scenario also recognizes UTI as being one of the most competent Fund Managers of the country on various parameters by these experts. However, past performance is no guarantee of future results
UTI DIVIDENT YIELD FUND is positioned as a conservatively managed equity fund. The fund portfolio will primarily comprise of stocks which are high dividend yielding (on historical basis) or potential high dividend yielding stocks. The fund will have a good mix of companies across various sectors. The fund is well suited for investors with medium to low risk profile and with a long term investment horizon. The fund aims to distribute regular dividends to its investors. Investors have an advantage of lower expense ratio as UTI Dividend Yield Fund is the largest fund in the dividend yield funds category in the industry. The Fund has a fair amount of retail participation. This helps in mitigating the volatility risks that may arise out of movement into and out of the Fund by large investors.
UTI OPPORTUNITIES FUND is an open ended equity oriented scheme. This scheme seeks to generate capital appreciation and / or income distribution by investing the funds of the scheme in equity shares and equity related instruments. The main focus of this scheme is to capitalize on opportunities arising in the market by responding to the dynamically changing Indian economy by moving its investments amongst different sectors as prevailing trends change, for investors looking to supplement their core equity portfolio with a dynamically managed portfolio.
First of its kind to offer an asset allocation combining financial asset allocation combining financial assets as well as physical asset. By providing exposure to alternative asset class the fund offers common investor a strategy traditionally reserved for HNI’s / Institutional clients. Alternative assets aid to portfolio diversification even in down markets due to their less / low correlation to traditional asset class like equity. Convenience of investing through SIP / STRIP in a fund that will have exposure to
Gold ETF’s, leading to a portfolio built over various market phases and economic conditions. Alternative market levels provide opportunities to clock higher growth over the market starts moving upward.
UTI MASTERSHARE is an open ended equity fund aiming to provide benefit of capital appreciation by investing the funds of the scheme in equity shares, equity related instruments and fully convertible bonds / debentures of the company. Investment may also be made in issued of partly convertible debentures / bonds including those issued on rights basis subject to the condition that as far as possible the non convertible portion of the debentures / bonds so acquired or subscribed shall be disinvested within a period of twelve months from the date of acquisition.
5. UTI BOND FUND.
The Bond fund is positioned as an aggressively managed pure debt fund with a high quality portfolio mix of G-Sec and PSU Bonds to capture both the duration movements as well as the spread compression & gets the best of both the worlds without compromising
on credit quality . Ideal for an investor who invests with a long term horizon & wants a higher return at a moderate right level.
EQUITY LINKED SAVINGS SCHEME is similar to the normal equity diversified schemes but what differentiates it from an open-ended equity diversified scheme is tax saving benefit and a lock-in period of three years. Flexibility to fund manager to focus on long term opportunities. E L S S has potential to counter inflation and notch up healthy inflation adjusted returns.
Author: Bhagwat Bankim
E Mail: [email protected]m