UTI Midcap Fund - Invest Online

UTI Midcap Fund was launched in April 2004 with the objective of providing capital appreciation by investing primarily in midcap stocks. The intention was to have at least 65 per cent of net assets in equity and equity- related instruments issued by companies in the CNX Midcap or CNX 500 indices.

The fund has been ranked in top 30 percentile ( CRISIL Fund Rank 1 and 2) in the five quarters since March 2014. Run by Anoop Bhaskar, it had quarterly average asset under management (AUM) of ₹ 2,574 crore as on March 31, 2015. The fund's average AUM grew 32 per cent sequentially, handily trumping the average increase of 18 per cent in the category (category performance is the average performance of schemes defined under the CRISIL Mutual Fund Ranking – Small and Midcap categories).

Performance The fund has consistently outperformed its benchmark as well as peers across 1-, 2-, 3-, 5-, 7- year time frames. UTI Midcap Fund has delivered 20.67 per cent compounded annualised returns since inception ( see chart). Similarly, it has done well if one looks at the SIP returns. ( see table).

During the global financial crisis in 2008 ( December 31, 2007 to March 31, 2009) when markets fell drastically, the fund (- 55.54 per cent) marginally outperformed peers (- 55.96 per cent) with returns that were in line with its benchmark (54.84 per cent). After the crisis (March 31, 2009 to December 31, 2010), fund ( 73.70 per cent) underperformed peers ( 76.61 per cent) but bettered the benchmark ( 72.43 per cent). During the European debt crisis (from December 31, 2010 to June 30, 2013), the fund (- 1.96 per cent) outpaced its benchmark (- 7.25 per cent) whereas returns were in line with peers (- 1.46 per cent).

In recent rallies after the European crisis subsided ( from June 30, 2013 to April 27, 2015), the fund has beaten its benchmark and peers, generating annualised returns of 59.52 per cent compared with 32.97 per cent for the benchmark and 51.34 per cent for peers.

An investment of ₹ 1,000 in the fund during launch would have fetched ₹ 8,071 by April 27, 2015 ( annualised returns of 20.84 per cent) vis- à- vis ₹ 9,499 (annualised 22.64 per cent) in the peer group and ₹ 5,178 (annualised 16.08 per cent) in the benchmark.

The fund's volatility over three years ended April 27, 2015, was 17.41 per cent, a tad more than the category's 17.25 per cent. The risk: return trade- off has worked in favour of the fund, which is reflected in its higher risk adjusted performance (Sharpe ratio) of 2.23 per cent against the benchmark's 0.98 per cent and the category's 2.02 per cent. Also, the fund gave superior excess returns (Jenson Alpha) of 23.23 per cent compared to 19.62 per cent of the category's for the last three year period.

Portfolio analysis

In the three years ended March 31, 2015, the fund was fully invested with an average 95 per cent exposure to equities, about 1 per cent to debt and the rest in cash and equivalent.

The fund invests predominantly in small and midcap stocks with an average 80 per cent exposure to small and midcaps and 20 per cent exposure to CRISIL defined largecaps in the above period.

The fund is well- diversified at sector and stock levels. Its exposure to top five industries was 42 per cent compared with the category's 51 per cent. At stock level, the fund held an average 76 stocks against 50 by the category in the last three years ended March 2015. The top five stocks constituted 19 per cent of the fund's portfolio against category's 22 per cent.

In the last three years ended March 2015, the fund has maintained an overweight stance on pharmaceuticals, auto and auto ancillaries, which have delivered superior returns of 36.59 per cent ( as represented by CNX Pharma) and 26.99 per cent ( as represented by CNX Auto), respectively, compared with the benchmark's ( CNX Midcap) 19 per cent.

The fund has consistently held 32 stocks for over the last three years in which the top contributors in terms of returns are Eicher Motors, Kaveri Seed Company and Sun Pharma Advanced Research

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Reliance Tax Saver (ELSS) Fund

3.HDFC TaxSaver

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.IDFC Tax Advantage (ELSS) Fund

9.Axis Tax Saver Fund

10.BNP Paribas Long Term Equity Fund

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

Invest in 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

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

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs