UTI Mutual Fund has launched an NFO (new fund offer) of the UTI Equity Savings Fund. It will open on 13th August and end on 24th August. This hybrid fund is expected to generate income through various fixed income securities investments and also provide long term capital appreciation through various equity and equity-related investments. The UTI Equity Scheme is also expected to implement various arbitrage and derivative strategies in order generate returns for investors.
This new equity-oriented hybrid fund will be managed by V. Srivasta who currently also manages the UTI Hybrid Equity Fund as well as equity portfolios of various UTI Capital Protection Oriented Schemes and UTI Dual Advantage Fixed Term Funds. The UTI Hybrid Equity Fund earlier known as the UTI Balanced Fund features one of the largest AUMs (Rs 6,513 crore) among currently available hybrid funds in India.
Equity Savings Schemes maintain a gross allocation to equities over 65% in order to be classified as equity funds for tax purposes. However, the effective equity asset allocation for most funds is often lower due to implementation of various arbitrage and derivative strategies. In case of the UTI Equity Savings Scheme, the fund is expected to maintain net long equity position equal to 20-50% of total scheme assets.
The new scheme will be benchmarked against the weighted average of three indices – 40% CRISIL Liquid Fund Index, 30% CRISIL Short Term Bond Fund Index and 30% Nifty 50 Index.
The returns data of these three indices are as follows:
| Index | 1 Year Returns | 5 Year Returns |
| CRISIL Liquid Fund Index | 7.08% | 8.16% |
| CRISIL Short Term Bond Fund Index | 4.29% | 8.09% |
| Nifty 50 Index | 12.70% | 14.61% |
The 1 year and 5 year weighted average return of the benchmark of the UTI Equity Savings Scheme is thus around 8% and 10% respectively.
Key Details of the UTI Equity Savings Fund NFO
| Minimum Subscription | Rs. 5000 |
| Fund Manager | V. Srivatsa |
| NFO Period | 13th August to 24th August |
| Benchmark | 40% CRISIL Liquid Fund Index, 30% CRISIL Short Term Bond Fund Index and 30% Nifty 50 Index. |
| Options | Growth, Monthly/Quarterly Dividend (Payout/Reinvest) |
Below are the top UTI Mutual Fund Schemes you can prefer Investing in.
| Scheme Name | 3Y Returns (%) | AUM (Rs. Cr.) | Category |
| UTI Equity Fund Direct-Growth | 12.29 | 5272.43 | Multi Cap Fund |
| UTI Nifty Index Fund Direct-Growth | 9.29 | 862.45 | Large Cap Fund |
| UTI MNC Fund Direct-Growth | 8.97 | 2056 | Sectoral/Thematic Fund |
| UTI Mastershare Direct-Growth | 8.97 | 5154.92 | Large Cap Fund |
| UTI Children’s Career Fund-Investment Plan Direct-Growth | 8.68 | 248.23 | Multi Cap Fund |
| UTI Gilt Fund Direct-Growth | 8.64 | 524.29 | Gilt Fund |
| UTI Value Opportunities Fund Direct-Growth | 8.42 | 4296.58 | Value Fund |
| UTI India Consumer Fund Direct-Growth | 7.87 | 289.8 | Sectoral/Thematic Fund |
| UTI Long Term Equity Fund Direct-Growth | 7.78 | 987.69 | ELSS |
| UTI Money Market Fund Direct-Growth | 7.58 | 6794.95 | Money Market Fund |
| UTI Liquid Cash Direct-Growth | 6.88 | 27565.95 | Liquid Fund |
| UTI Medium Term Fund Direct-Growth | 6.81 | 210.73 | Medium Duration Fund |
| UTI Arbitrage Fund Direct-Growth | 6.63 | 1639.89 | Arbitrage Hybrid Fund |
| UTI Banking and Financial Services Fund Direct Plan-Growth | 6.38 | 690.94 | Sectoral/Thematic Fund |
| UTI Dividend Yield Fund Direct-Growth | 6.28 | 2678.44 | Dividend Yield Fund |
| UTI Ultra Short Term Fund Direct-Growth | 6.05 | 6397.89 | Ultra Short Duration Fund |
| UTI Overnight Fund Direct-Growth | 5.73 | 26.27 | Overnight Fund |
| UTI Multi Asset Fund Direct-Growth | 5.47 | 996.38 | Multi Asset Allocation |
| UTI Regular Savings Fund Direct-Growth | 4.93 | 1208.67 | Conservative Hybrid Fund |
| UTI Mid Cap Fund Direct-Growth | 4.7 | 4340.32 | Mid Cap Fund |
| UTI Banking & PSU Debt Fund Direct-Growth | 4.52 | 838.91 | Banking and PSU Fund |
| UTI Infrastructure Fund Direct-Growth | 3.72 | 1605.79 | Sectoral/Thematic Fund |
| UTI Short-term Income Direct-Growth | 3.52 | 10353.85 | Short Duration Fund |
| UTI Treasury Advantage Fund Direct-Growth | 3.37 | 10282.65 | Low Duration Fund |
| UTI Retirement Benefit Pension Fund Direct | 3.23 | 2656.31 | Balanced Hybrid Fund |
| UTI Hybrid Equity Fund Direct Fund-Growth | 3.16 | 6126.96 | Aggressive Hybrid Fund |
| UTI Core Equity Fund Direct-Growth | 2.84 | 976.13 | Large & Mid Cap Fund |
| UTI Dynamic Bond Fund Direct-Growth | 2.09 | 1383.75 | Dynamic Bond Fund |
| UTI Healthcare Fund Direct-Growth | 1.23 | 410.55 | Sectoral/Thematic Fund |
| UTI Bond Fund Direct-Growth | -0.57 | 1213.76 | Medium to Long Duration Fund |
| UTI Credit Risk Fund Direct-Growth | -3.84 | 4537.59 | Credit Risk Fund |
| UTI Transportation and Logistics Fund Direct-Growth | -5.36 | 1677.96 | Sectoral/Thematic Fund |