100651  |  INF789F01976  |  4 star  |  Bronze

NAV

$ 104.42

1-Day Total Return

-0.89
%
INR | NAV as of 23/06/2017 09:30:00 | 1-Day Return as of 23 Jun 2017

TTM Yield

0.00%

Load

Multiple

Total Assets

42.4 bil

Expenses

2.40%

Fee Level

--

Turnover

11%

Status

Open

Min. Inv.

100

30-Day SEC Yield

--

Category

Large-Cap

Investment Style

Large Growth
Author
Morningstar's Take | 04/04/2017
by Nehal Meshram

UTI Mastershare is the oldest equity fund in India. It is a conservatively managed fund with a consistent dividend-paying track record of 30 years across all market cycles. However, this fund has to be held for longer periods to work well. 

Our confidence stems from the presence of manager Swati Kulkarni, who has been associated with UTI AMC for the past 24 years and has been a portfolio manager since June 2004. She has been at the fund’s helm since November 2006 and has built a solid track record on the funds she manages. She is aided by a competent and large investment team with seven portfolio managers on the equity side and eight research analysts, of which two act as comanagers.

Kulkarni follows a benchmark-aware large-cap strategy and usually picks stocks from the S&P BSE 100 Index. The portfolio typically comprises well-known names with established business models. Benchmark heavyweights such as HDFC Bank, Infosys, Axis Bank, and Reliance Industries often feature among the top holdings. She attempts to outperform the benchmark by under/overweighting the chosen stocks. She has displayed good stock-picking abilities even with nonbenchmark stocks. For instance, her conviction in materials player Shree Cement because of its competitive position and pricing power has paid off. Kulkarni’s buy-and-hold approach is evident in her investment style, but she takes some active calls within the overall internal risk management framework.

Overall, we're impressed with Kulkarni’s disciplined approach and fine execution across various market conditions. Investors should note that Kulkarni is focused mainly on delivering superior risk-adjusted returns as against its peers and reducing risk by investing in quality issues with deleveraged balance sheets. Such a strategy is most likely to succeed in downturns. Its relatively conservative nature can cause it to underperform in market rallies. Nevertheless, her investment style will hold the fund in good stead over the long haul of a full market cycle. We reiterate our Morningstar Analyst Rating of Bronze.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

A diversified portfolio aligned to its benchmark.

People

A seasoned manager backed by a large team that has witnessed different market cycles.

Parent

UTI has a strong backing from T.Rowe Price, but certain aspects could be improved in our opinion.

Process

Disciplined investment process centered on building a quality portfolio.

Performance

The fund has been an impressive performer on the risk-adjusted-return front.

Price

The fund's expense ratio is lower than that of the median offering from the category.

Important Disclosures

Unless stated otherwise, this report was prepared by the person(s) noted in their capacity as Manager Research Analysts (i.e., fund analysts) employed by Morningstar, Inc., or one of its affiliates. It has not been made available to the issuer prior to publication.

Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Manager Research Analysts’ expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are not guarantees nor should they be viewed as an assessment of a fund’s or the fund’s underlying securities’ creditworthiness.

No material interests are held by Morningstar or the Manager Research Analyst in the financial products that are the subject of the research reports or the product issuer. Regarding Morningstar’s conflicts of interest: 1) Manager Research Analysts’ compensation is derived from Morningstar’s overall earnings and consists of salary, bonus and in some cases restricted stock; however, Manager Research Analysts are neither allowed to participate directly or try to influence Morningstar’s investment management group’s business arrangements nor allow employees from the investment management group to participate or influence the analysis or opinion prepared by them. Further information on Morningstar’s Code of Ethics policies is available from http://corporate.morningstar.com/us/asp/subject.aspx?xmlfile=540.xml

Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information contained herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without written permission.

For Recipients in India: Research on securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (“Investment Research”) is prepared by Morningstar Investment Adviser India Private Limited, which is registered with the Securities and Exchange Board of India. Your access to the Investment Research does not establish an advisory relationship with Morningstar Investment Adviser India. You should seek the advice of a financial professional before making an investment decision to ensure, among other things, that the security is suitable based on your particular needs and circumstances.

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