About UTI Mutual Fund
The UTI mutual fund is a public mutual fund registered with the Securities and Exchange Board of India (SEBI) on 1 February 2003. Erstwhile UTI (Unit Trust of India) was annulled which led to its bifurcation into two - Specified Undertaking of Unit Trust of India (SUUTI) and UTI Mutual Fund (UTIMF).
Although not a government entity in its entirety, 74% stake of UTI Asset Management Company Limited (UTI AMC) is owned by 4 main public sector organizations - Life Insurance Corp. of India (LIC), State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB). 26% stake is owned by T Rowe Price Group Inc (TRP Group), through its subsidiary T Rowe Price Global Investment Services Ltd. (TRP).
UTIMF, headquartered in Mumbai, Maharashtra, India, is one of the oldest and largest ones in the market with over 12 million investor accounts registered under more than 250 schemes/plans (some of which will be discussed later) with a total AuM of nearly 1.59 trillion INR. Some of the services offered include, Portfolio Management Services (PMS), Mutual Funds, National Pension System (NPS), Private Equity, Private Debt and Offshore Funds.
Approximately 12.8% of the entire client base of mutual fund bodies in India (around 11 million folios out of 86 million) is managed by UTIMF. With a lot of investment options like gold, stocks and mutual funds among many others, UTIMF is a trusted MF body.
How to invest in UTI Mutual Funds?
Investing in mutual funds can be done in two ways - online and offline. Online investing has a huge advantage over offline because you have the liberty to sit at home, and invest directly from your device. Here’s how you do that through Mobikwik:
- Step 1- Register for a mobikwik account, or log in if you already have one.
- Step 2-Complete your KYC process by submitting your personal details, such as address, PAN card number, and mobile number.
- Step 3 - Choose a UTI mutual fund scheme of your choice (options available in a separate section later).
- Step 4 - You can invest in two ways - a bulk amount once, or small amounts at regular intervals - called SIP (Systematic Investment Plan).
- Step 5 - Process completion can be noticed in your Mobikwik account which usually doesn’t take more than 3-4 working days.
Types of Funds Offered by UTI Mutual Fund
Some of UTIMF’s provisions include, equity-oriented MFs, debt-oriented MFs, hybrid MFs among a lot others. It’s important to choose which type of MF you want to go for, based on the risks involved, returns you expect and your investment goals. Here are some of the top performing MFs by UTI -
UTI Transportation & Logistics Fund
This is an Equity-Sectoral mutual fund with an NAV (Net Asset Value) of ₹ 85.3332 as of August 14, 2020. The fund, which was launched in April 2008, has wealth creation as its primary objective. With a high risk factor, but a return of over 7% in 2020, this mutual fund has been performing well.
UTI MNC Fund
As is apparent from its name, the UTI MNC fund is an Equity-Thematic fund focused on equity investments of multinational corporations. The UTI MNC fund’s NAV was upwards of ₹ 199 as of August 2020. Despite being a high risk fund scheme, it delivered 12.3% in 2019. This is a fairly old scheme, launched in May 1998.
UTI Value Opportunities Fund
As of August 2020, the NAV for this Equity-Value fund is ₹ 25.3652. With a moderately high risk factor involved, this is the third highest-rated UTI mutual fund scheme. In 2019, returns for this UTI MF were 8.1%.
UTI Equity Fund
Being an Equity-Multi Cap Fund with an NAV higher than ₹ 150 as of August 2020, this mutual fund has a 4 star rating. With a moderately high risk factor, this fund was created to invest in a variety of equities in May 1992. In 2019, it returned over 13.6%.
UTI Arbitrage Fund
This Hybrid-Arbitrage Fund is the most famous among hybrid mutual funds provided by UTI. Being a moderately low risk fund, this fund invests in equity and derivatives, and generates return based on their price differentials. In 2019, it delivered a modest 5.4%.
UTI Corporate Bond Fund
With a moderate risk factor, this fund is an Open-ended Debt Scheme. A recent fund which was created only in August, 2018, its NAV hovers around ₹ 12 as of August 14, 2020. This UTI fund delivered approximately 12% in returns in 2019.
UTI Overnight Fund
This is an Overnight & Liquids Fund with an NAV of over ₹ 2742 as of August 16, 2020. A low risk fund created in November 2003, the UTI overnight fund invests in bonds with an expiry of one day. In 2019, it delivered over 4.2% returns.
UTI Gilt Fund
A moderate risk fund, the UTI Debt-Gilt Fund was created in January 2002 for investing in sovereign securities that are issued by the central and state governments in an attempt to generate risk-free returns over the medium to long term horizon. Its annual return in 2019 was 9.96%.
UTI Long Term Equity Fund (Tax Saving)
This is an Equity-ELSS fund created in December 1999, for tax saving purposes. It has a moderately high risk factor, with a substantial annual return of 6.97% in 2019 with a 3 star rating.
UTI Liquid Cash Plan
Being a low risk, Overnight and Liquid Funds created in December 2003, this fund delivered a modest 5.19% returns in 2019, and is rated 3 stars.