India’s Oldest Mutual Fund Company
Among 45 odd mutual fund house in India, UTI Asset Management Company Ltd. (UTI AMC) is the oldest India’s Mutual Fund Company and the most reputed names.
Let us look into this reputed AMC in detail and its most popular schemes available in the market.
UTI Mutual Fund: Key Information
| Mutual Fund | UTI Mutual Fund |
| Setup Date | 1st February 2003 |
| Incorporation Date | 14th November 2002 |
| Sponsor | State Bank of India / Punjab National Bank / Bank of Baroda / Life Insurance Corporation |
| Trustee | UTI Trustee Co (P) Ltd |
| CEO / MD | Imtaiyazur Rahman |
| Compliance Officer | Mr. Vivek Maheshwari |
| Assets Managed | Rs 23,372 Crores (approx in 2023) |
8 Popular UTI Mutual Funds
Here are top 10 funds of UTI Mutual Fund in terms of performance and popularity among the investors:
1. UTI Transportation and Logistics Fund
This fund is the most popular fund in sector mutual fund category and rated 5 stars by many rating agencies. This fund has given 28.52% returns per annum, since its launch.
Returns per annum over the years from this fund are:
| Duration | Returns |
| 1 year | 11.77% |
| 3 years | 12.92% |
| 5 years | 31.38% |
Here are the key information of this fund:
| Launch Date | 01 January 2013 |
| Fund Category | Equity – Sector |
| Plan Type | Direct |
| Rating by Groww | 5 Star |
| AUM (Fund Size) | ₹1,540 Cr |
| Riskometer | High |
| Minimum SIP | ₹500 |
| Minimum SWP | Not Supported |
| Benchmark | UTI Transportation & Logistics Index |
| Age of the fund | 5 years old |
| Expense Ratio | 1.4% |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1%; |
| Investment Objective | Investment objective is capital appreciation through investments in the stocks of the companies engaged in the transportation and logistics sector. |
2. UTI Mid Cap Fund
This fund is in high demand among the mutual fund investors recently. This fund has given 23.54% returns per annum, since its launch.
Returns per annum over the years from this fund are:
| Duration | Returns |
| 1 year | 13.81% |
| 3 years | 12.21% |
| 5 years | 27.03% |
Here are the key information of this fund:
| Launch Date | 01 January 2013 |
| Fund Category | Equity – Mid cap |
| Plan Type | Direct |
| Rating by Groww | 3 Star |
| AUM (Fund Size) | ₹4,441 Cr |
| Riskometer | High |
| Minimum SIP | ₹500 |
| Minimum SWP | Not Supported |
| Benchmark | NIFTY Midcap 150 |
| Age of the fund | 5 years old |
| Expense Ratio | 1.54% |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1%; |
| Investment Objective | Investment objective is capital appreciation by investing primarily in mid cap stocks. |
3. UTI Hybrid Equity Fund
This fund also in high demand among the mutual fund investors recently. This fund has given 13.15% returns per annum, since its launch.
Returns per annum over the years from this fund are:
| Duration | Returns |
| 1 year | 8.66% |
| 3 years | 10.53% |
| 5 years | 14.58% |
Here are the key information of this fund:
| Launch Date | 01 January 2013 |
| Fund Category | Hybrid – Equity |
| Plan Type | Direct |
| Rating by Groww | 3 Star |
| AUM (Fund Size) | ₹3,097 Cr |
| Riskometer | Moderately High |
| Minimum SIP | ₹500 |
| Minimum SWP | Not Supported |
| Benchmark | CRISIL Hybrid 25+75 Aggressive Index |
| Age of the fund | 5 years old |
| Expense Ratio | 1.65% |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1%; |
| Investment Objective | Aims to invest in portfolio of equity/equity related securities and fixed income securities (debt & money market instruments) with a view to generating regular income together with capital appreciation. |
4. UTI Equity Fund
This fund has given 15.79% returns per annum, since its launch.
Returns per annum over the years from this fund are:
| Duration | Returns |
| 1 year | 18.02% |
| 3 years | 10.59% |
| 5 years | 16.94% |
Here are the key information of this fund:
| Launch Date | 01 January 2013 |
| Fund Category | Equity – Multi cap |
| Plan Type | Direct |
| Rating by Groww | 3 Star |
| AUM (Fund Size) | ₹5,063 Cr |
| Riskometer | Moderately High |
| Minimum SIP | ₹500 |
| Minimum SWP | Not Supported |
| Benchmark | S&P BSE 200 |
| Age of the fund | 5 years old |
| Expense Ratio | 1.85% |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1%; |
| Investment Objective | The principal investment objective is to provide long term capital appreciation through investment in the securities market in India. |
5. UTI Nifty Index Fund
This is the best index mutual fund scheme in the market right now. This fund has given 12.04% returns per annum, since its launch.
Returns per annum over the years from this fund are:
| Duration | Returns |
| 1 year | 12.07% |
| 3 years | 9.16% |
| 5 years | 12.70% |
Here are the key information of this fund:
| Launch Date | 01 January 2013 |
| Fund Category | Index |
| Plan Type | Direct |
| Rating by Groww | 5 Star |
| AUM (Fund Size) | ₹716 Cr |
| Riskometer | Moderately High |
| Minimum SIP | ₹500 |
| Minimum SWP | Not Supported |
| Benchmark | NIFTY 50 Total Return |
| Age of the fund | 5 years old |
| Expense Ratio | 0.13% |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1%; |
| Investment Objective | The scheme seeks to invest in stocks of companies comprising Nifty 50 Index and endeavor to achieve return equivalent to Nifty 50 Index by passive investment. |
6. UTI MNC Fund
UTI mutual funds are well-known for the performance of their schemes in sector fund category. This fund has given 20.65% returns per annum, since its launch.
Returns per annum over the years from this fund are:
| Duration | Returns |
| 1 year | 18.09% |
| 3 years | 10.35% |
| 5 years | 22.12% |
Here are the key information of this fund:
| Launch Date | 01 January 2013 |
| Fund Category | Equity – Sector |
| Plan Type | Direct |
| Rating by Groww | 4 Star |
| AUM (Fund Size) | ₹2,084 Cr |
| Riskometer | Moderately High |
| Minimum SIP | ₹500 |
| Minimum SWP | Not Supported |
| Benchmark | NIFTY MNC TRI |
| Age of the fund | 5 years old |
| Expense Ratio | 1.59% |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1%; |
| Investment Objective | The scheme seeks to generate long-term capital appreciation by investing predominantly in equity and equity related securities of multinational companies. |
7. UTI Dynamic Bond Fund
This fund has given 9.73% returns per annum, since its launch. Last one year performance of this fund is less than its benchmark but its performance in last 3 and 5 years tenure is way better than benchmark.
Returns per annum over the years from this fund are:
| Duration | Returns |
| 1 year | 3.80% |
| 3 years | 8.86% |
| 5 years | 9.37% |
Here are the key information of this fund:
| Launch Date | 01 January 2013 |
| Fund Category | Debt – Dynamic |
| Plan Type | Direct |
| Rating by Groww | 4 Star |
| AUM (Fund Size) | ₹1,884 Cr |
| Riskometer | Moderately Low |
| Minimum SIP | ₹500 |
| Minimum SWP | ₹1,000 |
| Benchmark | CRISIL Dynamic Debt Index |
| Age of the fund | 5 years old |
| Expense Ratio | 1.03% |
| Exit Load | NIL |
| Investment Objective | The investment objective of the scheme is to generate optimal returns with adequate liquidity through active management of the portfolio, by investing in debt and money market instruments |
8. UTI Banking & Financial Services Fund
This fund is the newest among the UTI mutual funds but certainly made its mark in the category since launch. This fund has given 14.08% returns per annum, since its launch.
Returns per annum over the years from this fund are:
| Duration | Returns |
| 1 year | 5.67% |
| 3 years | 8.41% |
| 5 years | NA |
Here are the key information of this fund:
| Launch Date | 03 February 2014 |
| Fund Category | Equity – Sector |
| Plan Type | Direct |
| Rating by Groww | 4 Star |
| AUM (Fund Size) | ₹1,213 Cr |
| Riskometer | Low |
| Minimum SIP | ₹500 |
| Minimum SWP | Not Supported |
| Benchmark | NIFTY Financial Services |
| Age of the fund | 4 years old |
| Expense Ratio | 0.22% |
| Exit Load | NIL |
| Investment Objective | The scheme seeks to generate long-term capital appreciation by investing predominantly in equity and equity related securities of companies/institutions engaged in the banking and financial services activities. |
UTI AMC: Company History
The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched Unit Trust of India (UTI).
UTI enjoyed a monopoly in the Indian mutual fund market until 1987, when a host of other government-controlled Indian financial companies established their own funds, including State Bank of India, Canara Bank and by Punjab National Bank.
UTI has contributed immensely to industrial and capital growth in the Indian market. It has led transformation initiatives like developmental financial institutions, rural outreach programs and financial products and services.
UTI Mutual Fund was carved out of the erstwhile UTI as a SEBI registered mutual fund from 1 February 2003. The Unit Trust of India Act 1963 was repealed, paving way for the bifurcation of UTI into – Specified Undertaking of Unit Trust of India (SUUTI) and UTI Mutual Fund (UTIMF).
UTI Mutual Fund has been the pioneer for launching various schemes viz. UTI Unit Linked Insurance Plan (ULIP) with life & accident cover (Launched in 1971), UTI Mastershare (Launched in 1986), India’s first Offshore Fund – India fund (Launched in 1986), UTI Wealth Builder Fund, the first of its kind in the Indian mutual fund industry combining different asset classes i.e equity and gold which are lowly correlated
About UTI AMC
UTI AMC was incorporated on November 14, 2002, and commenced operations from February 1, 2003.
UTI AMC is the investment manager to the schemes of UTI Mutual Fund. It also manages offshore funds and provides support to the Specified Undertaking of the Unit Trust of India.
UTI AMC has been managing/advising the portfolios of domestic/offshore funds and mandates since inception in 2004. Some of the key offshore mandates/funds that the PMS Division has been advising/managing are:
- Shinsei India Fund, an equity fund based in Japan,
- Rainbow Fund, registered in Mauritius as a multi-class equity fund,
- India allocation of the United China-India Dynamic Growth Fund, based out of Singapore,
- Investment manager to the Al Madina India Fund, a Shariah-compliant Fund registered in Kuwait.
UTI AMC is appointed as the portfolio manager by the Government of India for the National Skill Development Fund and funds of Postal Life Insurance, which are predominantly debt-oriented.
About UTI Sponsors
UTI AMC has been promoted by 4 sponsors, namely, State Bank of India (SBI), Life Insurance Corporation of India (LIC), Bank of Baroda (BOB) and Punjab National Bank (PNB) and each of them hold 25% of the paid-up capital of UTI AMC. UTI AMC was converted from a private limited company to a limited company with effect from November 14, 2007.
On January 20, 2010, T.Rowe Price Group Inc. through its wholly owned subsidiary T.Rowe Price Global Investment Services Ltd. U.K.(TRP) acquired 26% stake in UTI AMC after obtaining all the requisite approvals from the Government of India, SEBI and the RBI.
Directors representing TRP have been inducted on UTI AMC board. This ensures an effective amalgam of global technological expertise and the long experience with Indian capital markets.
The sponsors are neither responsible nor liable for any loss resulting from the operation of the scheme beyond the contribution of Rs.10,000/- made by them towards setting up the Mutual Fund.
About Trustee
UTI Trustee Company Private Limited, a company incorporated under The Companies Act, 1956 will be the Trustee of transferred/migrated schemes, which is the first and sole trustee of the Mutual Fund under the Trust Deed dated December 9, 2002 executed between the Sponsors and the Trustee Company (the Trustee).
UTI AMC: Company Objective
Investment Philosophy of UTI AMC is to provide clients with investment solutions commensurate with their risk profile and their return expectations.
At the core of UTI AMC’s investment philosophy is the ability to value companies and securities, which arises from their research capabilities and the ability to select securities appropriate for the various types of portfolios based on their risk classification.
UTI AMC believes in active management of portfolios in line with the portfolio mandates to generate superior returns relative to the benchmark, regular review of portfolios and their risk characteristics ensure consistent performance.
UTI AMC: Key People
CEO/MD: Mr. Leo Puri
UTI AMC: Salient Features
Some of the salient features of UTI AMC are:
- UTI AMC, India’s most trusted wealth creators and is a pioneer in the fast pace Indian mutual fund industry, keeping the interest of its investors in its heart.
- UTI AMC provides the mutual fund investors with an all-around product portfolio that helps them to meet various investing needs.
- They are committed to continuing their legacy of delivering best in class services with a focus on social responsibility and nation-building.
- UTI AMC has completed 50 years as India’s leading Financial service institution and was a sole vehicle of capital market investment for Indian Citizens till the early 90’s. The institution has shown great resilience and has grown from strength to strength overcoming economic turbulence and global turn around.
- UTI Mutual Fund has assets under management across different businesses which include domestic mutual fund, Portfolio Management Services, International business, Retirement Solutions, Venture Funds and Alternative Investment assets.
- UTI Mutual Fund is today a household name in India and has a wide portfolio to suit the varied needs of investors supported by industry-led best practices, long-term vision, and shareholder values.
- With 150 branches, 47,000 highly trained IFAs, 320 Chief Agents and Business Development Associates and over 1 crore investor accounts, UTI AMC is one of the leading financial institutions with a pan Indian presence.
- UTI Mutual Fund has launched the Chatbot, which allows existing UTI mutual fund investors to invest into UTI schemes. The Chatbot is also capable of answering basic mutual fund related queries, automatically. This initiative aims to enable and simply digital investing.
- UTI MF is one of the largest mutual funds in India with investor accounts of over 1 crore under its 221 domestic schemes/plans as on December 31, 2017.
- The performance of top UTI mutual fund online schemes provides you consistent growth with high returns in future.
Things to Remember
There are a lot of factors you should look into before selecting a mutual fund scheme which will match your investment goals.
Following the few important things you should always remember before investing in Mutual Funds :
- Higher rates: don’t blindly invest in the fund with the highest returns. Invest based on the duration you want to invest for.
- Every person’s financial condition is different. Evaluate the funds you invest in yourself – don’t invest in a fund because of its popularity.
- Systematic Investment Plan (SIP) is much better and safer option for investing in equity oriented mutual funds.
- Direct plan for mutual fund gives you higher returns as compared to the regular plan of mutual fund schemes.
- STP route is best for all those investors who wish to invest a lump sum in mutual fund schemes because this way they get the dual benefits of comparative risk investment.
- Review your investment from time to time but not too often. Once a few weeks is good enough.
Also, there are many myths and false beliefs about mutual funds circulating in the markets from time to time. The most successful investors are the ones that ignore the myths and pay attention only to what actually needs their attention.
Investing in mutual funds online is very simple and paperless. Simply log in to your Groww account, choose a fund, and invest using net banking – exactly like you would when shopping online.
Happy investing!
Disclaimer: The views expressed here are of the author and do not reflect those of Groww.