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UTI Mutual Fund has launched a new NFO by the name of UTI Focussed Equity Fund – Series V. This is an equity oriented close-ended fund. Which means, once you invest in it, you cannot transact with it till the maturity date. The lock-in period for this fund is 1102 days. The minimum amount needed for investment is ₹5000. UTI Mutual Fund started accepting subscriptions for this fund on 20th November 2017 and will accept subscriptions till 4th December 2017. The fund is rated as ‘moderately risky’ due to its exposure to the equity markets.
|NFO Name||UTI Focussed Equity Fund – Series V|
|NFO Launch Date||20 Nov 2017|
|Last Date for Application||04 Dec 2017|
|Minimum Investment Amount||₹5000
|Fund Type||Close Ended Equity Scheme
|Risk Level||Moderately High
How to Invest in UTI Focussed Equity Fund
If you want to invest in this UTI NFO, you have to follow the steps below.
- Log in to your Groww account. If you are a new user, sign up first – it is completely online and takes 2-3 working days.
- Decide the amount you would like to invest in UTI Focussed Equity Fund.
- Email Groww support on email@example.com with a request or call/Whatsapp on 9108800604.
UTI Focussed Equity Fund: Objective
This UTI NFO aims to generate capital growth on the back of the growing economy due to the incumbent government’s reformative policies. UTI says they aim to maintain a compact portfolio of up to 30 stocks.
The fund aims to provide long-term capital appreciation by:
- Keeping a compact and focused portfolio of stocks.
- Taking advantage of the current changes experienced by the Indian economy due to the reforms being enacted by the government.
- Recognizing and investing in companies that are bound to gain from the current move of the economy from the unorganised sector to the organised sector.
UTI NFO: Potential Investment Themes
The overall strategy will be to invest in various sectors across different market capitalizations. The four major sectors being eyed by this NFO are:
- Financial Services Sector: UTI belives the peaking of stressed assets will lead to a gradual reduction in credit cost. Most equity mutual funds invest a bulk of their investments in the financial services sector.
- Pharmaceutical Sector: The pharmaceutical industry had been performing very well until a year or two ago. Now, after what may be termed as a slight correction, many investors believe the pharma industry will start climbing again because of domestic demand.
- Logistics sector: After the implementation of GST, things are looking up in the logistics industry. Many funds are hoping to take advantage of the growth that is supposed to have happened in the logistics space due to the ease of inter-state vehicle movement.
- Consumer goods: The average Indian’s disposable income is increasing and that has led to the increased consumption of consumer goods. The FMCG (Fast Moving Consumer Goods) space has seen immense growth for many years now. The next round of growth is supposed to be fueled by the penetration of consumer goods in the rural areas of India where growth.
UTI Focussed Equity Fund – Series V: Fund Managers
This UTI mutual fund will be managed by Mr Vetri Subramaniam and Mr Sachin Trivedi.
Before, UTI Mutual Fund, Vetri was working with Invesco AMC as the Chief Investment Officer. He has worked with many mutual fund and securities companies. Some of those are Motilal Oswal Securities Ltd., Kotak Mahindra Asset Management, and SSKI Investors Services Ltd.
Sachin Trivedi is a CFA and has been associated with UTI Mutual Fund for over a decade.
Some of the funds that he manages are UTI Transportation and Logistics Fund, UTI Multi Cap Fund, UTI Focussed Equity Fund Series IV (1104 Days), and this new NFO by UTI, UTI Focussed Equity Fund Series V.
UTI NFO Risk
This UTI fund is rated as moderately risky. It is benchmarked against the S&P BSE 200 index. Due to its exposure to equity stocks of all capitalizations, it is on the riskier side.
UTI NFO Alternates
If you want to invest in a fund with similar equity exposure without the lock-in period, you can explore multi-cap funds. Motilal Oswal MOSt Focused Multicap 35 Fund is very similar to this UTI NFO because it too believes in investing with a concentrated portfolio of funds. As the name suggests, it has around 35 stocks in its portfolio.