Skip to main content

UTI Mastershare


UTI Mastershare Invest Online

 
 

Like many large-cap-oriented funds, old warhorse UTI Mastershare too has stumbled over the past year, losing 3 per cent. Blame this on two factors.

In the volatile market since January this year, several large-cap stocks, particularly those in the commodity space, have ended up on the losing side. In contrast, many mid-cap stocks have held their heads above water.

So, the S&P BSE Sensex is down 10 per cent, the S&P BSE 100 has slipped 8 per cent while the S&P BSE Mid-cap index is still up 4 per cent.

Relative to peers, the share of large-caps in UTI Mastershare's portfolio is on the higher side — across market cycles, they have formed 80 per cent or more of the fund's portfolio. Currently, large-cap stocks (market capitalisation of ₹10,000 crore and more) make up nearly 85 per cent of the fund's portfolio.

The short-term picture may not look pretty, but UTI Mastershare remains a good choice for conservative investors and those who seek regular dividends.

One, the 29-year old fund, a veteran of many market cycles, has delivered good returns in longer periods — about 14 per cent annualised over three years, 9 per cent over five years and 12.5 per cent over 10 years. These are not top-of-the-chart, and there are peers who have done better.

That said, when the market takes deep cuts like in 2009, 2011 and 2013, the fund's bias towards large-caps helps it contain the downside very effectively.

Being overweight on large-caps may pay off at the current iffy market juncture, too. If the pain in the market worsens, large-caps may not suffer as much as mid- and small-caps. And a revival may see large-caps rally faster to make up for lost ground.

Good dividend record

UTI Mastershare ranks middle-of-the-road in its category, but the fund beats its benchmark BSE 100 fairly consistently, doing better during both market upsides and downsides.

On an annual rolling return basis, the fund has outperformed the benchmark nearly three-fourths of the time over the past five years, and almost always in the past year. Its one-, three- and five-year returns are higher than the benchmark's by 3-5 percentage points. UTI Mastershare has an enviable record of declaring dividends without a break, even in tough years.

While the fund follows a growth-oriented strategy, a fairly diversified portfolio consisting of more than 50 stocks reduces risk. Good stock selection and well-timed moves have helped. Picks, such as MRF, Shree Cement, Asian Paints and Maruti Suzuki have tripled to quintupled over the past five years. Over the last year, the fund's timely moves included adding up on Infosys, which is reviving well, and cutting down on Vedanta, which is getting hit by the commodity downturn. The few mid-caps in the portfolio are quality names, such as Indraprastha Gas and SKF India.

The fund remains invested mostly in equities (95 per cent and more of the portfolio). A mix of cyclical (banks and autos) and defensive (software and pharma) sectors form the top holdings.

-----------------------------------------------
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

-----------------------------------------------


Popular posts from this blog

All about "Derivatives"

What are derivatives? Derivatives are financial instruments, which as the name suggests, derive their value from another asset — called the underlying. What are the typical underlying assets? Any asset, whose price is dynamic, probably has a derivative contract today. The most popular ones being stocks, indices, precious metals, commodities, agro products, currencies, etc. Why were they invented? In an increasingly dynamic world, prices of virtually all assets keep changing, thereby exposing participants to price risks. Hence, derivatives were invented to negate these price fluctuations. For example, a wheat farmer expects to sell his crop at the current price of Rs 10/kg and make profits of Rs 2/kg. But, by the time his crop is ready, the price of wheat may have gone down to Rs 5/kg, making him sell his crop at a loss of Rs 3/kg. In order to avoid this, he may enter into a forward contract, agreeing to sell wheat at Rs 10/ kg, right at the outset. So, even if the price of wheat falls ...
Read more

Zero Coupon Bonds or discount bond or deep discount bond

A ZERO-COUPON bond (also called a discount bond or deep discount bond ) is a bond bought at a price lower than its face value with the face value repaid at the time of maturity.   There is no coupon or interim payments, hence the term zero-coupon bond. Investors earn return from the compounded interest all paid at maturity plus the difference between the discounted price of the bond and its par (or redemption) value. In contrast, an investor who has a regular bond receives income from coupon payments, which are usually made semi-annually. The investor also receives the principal or face value of the investment when the bond matures. Zero-coupon bonds may be long or short-term investments.   Long term zero coupon maturity dates typically start at 10 years. The bonds can be held until maturity or sold on secondary bond markets.
Read more

Mutual Fund MIPs can give better returns than Post Office MIS

Post Office MIS vs  Mutual Fund MIPs   Post office Monthly Income Scheme has for long been a favourite with investors who want regular monthly income from their investments. They offer risk free 8.5% returns and are especially preferred by conservative investors, like retirees who need regular monthly income from their investments. However, top performing mutual fund monthly income plans (MIPs) have beaten Post Office Monthly Income Scheme (MIS), in terms of annualized returns over the last 5 years, by investing a small part of the corpus in equities which can give higher returns than fixed income investments. The value proposition of the mutual fund aggressive MIPs is that, the interest from debt investment is supplemented by an additional boost to equity returns. Please see the chart below for five year annualized returns from Post office MIS and top performing mutual fund MIPs, monthly d...
Read more

Benefits Of Repo Rate & CRR Rate Cut On Consumers

  How Reduction In Repo Rate & CRR Affects Customers Finally  RBI announced slashing of repo rate by 25 basis points (bps ) and cash reserve ratio (CRR) by 25 bps which industry experts believe will fuel the economic growth to some extent. Although experts were expecting higher rate cut this year. This lowering of the rate cuts has taken place for the first time in nine months. Now let's see how reducing the repo rate (defined in economic term as the rate at which RBI lends money to the banks) relates to the following individuals and sectors: Banking:   Lowering of repo rate directly reduces borrowing costs of a bank. Banks in turn reduces interest rates on different types of loans such as home, auto, business etc. Similarly trimming down of CRR allows banks to unlock money for lending to the customers i.e. with 0.25 rate cut banks are estimated to lend more than INR. 17 Crores. Consumers:   Lower repo rate does not necessarily benefit existing loan borrowers but new loan se...
Read more

NRI Corner: The process of remittances abroad

The process of remittances abroad, and back, is cumbersome. Here’s how you can wade through without hassles Approach The Right Place Outward remittances or the process of sending money abroad is governed by many regulations. In India, outward remittances are made mainly through banks. At the outset, you need to remember that you just cannot trust any individual or a financial firm with the responsibility of sending your money. Experts recommend that you should always try to choose a bank with an international footprint, which will make your job easier. Choose Mode Of Transfer The next step is to choose the mode of transfer. One option is to get a Foreign Currency Demand Draft ( FCDD ). This draft will be denominated in foreign currency and should be drawn in favour of the recipient/ beneficiary. The beneficiary does not necessarily need to have an account with the same bank. The other option is to send money via wire transfer. Do not be puzzled if the bank official uses the word SWIFT ...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now