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Unit Trust of India
An early & regular investment today, leads to prosperous tomorrow
Prepared by: Supervised by: Ms. Priyanka MittalGaurav Goel MBA 4507/08
Khushboo Kumari MBA 4511/08
Prerna Srivastava MBA 4514/08
Amresh Kr.Thakur MBA4529/08
Deepak Gupta MBA4550/08
Diksha Mehtani MBA 4565/08
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal.
Or a mutual fund is a professionally-managed firm of collective investments that pools money from many investors
and invests it in stocks, bonds, short-term money market instruments, and/or other securities.
The SEBI regulations, 1993 defines a mutual fund as “a fund in the form of a trust by a sponsor, to raise money by the
trustees trough the sale of units to the public, under one or more schemes, for investing in securities in accordance with
these regulations”
What is Mutual Fund?
EMERGENCE OF MUTUAL FUND IN INDIA
Mutual funds in India began in 1964 Unit Trust of India (UTI) was the first Remains the market leader even today Having about 68% of the market share Lost monopoly in 1987 With entry of public sector mutual funds Promoted by public sector banks and insurance companies Industry was open to foreign institutions in 1993 Real competitive structure began only then
Unit trust of India was established on 1963 by an Act of Parliament.
The first scheme launched by UTI was unit Scheme in 1964
In 1978, UTI was de-linked from the RBI and IDBI took over the regulatory and administrative control in place of RBI
At the end of 1988 UTI had Rs,6700 crores of assets under management.
FIRST PHASE-1964-87
SECOND PHASE -1987-1993SBI Mutual fund was the first followed by Can bank Mutual
Fund (Dec1987)
PnB Mutual Fund (Aug 1989)
Bank of India(Jun1990),LIC in 1989 and GIC in 1990
Bank of Baroda Mutual Fund (Oct 1992)
The end of 1993 marked Rs.47004 a assets under management
Third Phase-1993-2003 Entry of Pvt. Sector Funds
A new era started in the Indian mutual fund industry, with the entry of pvt sector funds from 1993
The erstwhile Kothari Pioneer(now emerged with Franklin Templeton ) was the first pvt sector mf registered in July 1993.
At the end of January 2003,there were 33 mutual fund with total assets of Rs.121805 crores.
Fourth Phase-since Feb 2003
This phase had bitter experience of UTI. It was bifurcated into two separate entities. One is the specified Undertaking of the UTI of
Rs.29835 crores.
The 2nd is UTI Mutual Fund Ltd, sponsored by SBI, PnB, BOB, LIC
With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76000crores and the setting up a UTI mutual fund
MUTUAL FUND OPERATION FLOW CHART
IMPORTANCE OF MUTUAL FUND
Channelizing savings for investment
Offering wide portfolio investment
Providing better yields
Rendering expertise investment service at low cost
Providing research service
Offering tax benefits
Diversification
DRAWBACKS OF MUTUAL FUNDS
No Guarantees
Fees and commissions
Taxes
Management risk
RISKS ASSOCIATED WITH MUTUAL FUNDS
market risk
political risk
inflation risk
business risk
economic risk
UNIT TRUST OF INDIA (UTI)
VISIONTo be the most Preferred Mutual Fund.
OUR MISSION IS TO MAKE UTI MUTUAL FUND: The most trusted brand, admired by all stakeholders • The largest and most efficient money manager with global presence • The best in class customer service provider • The most preferred employer • The most innovative and best wealth creator • A socially responsible organization known for best corporate governance.
REGISTERED OFFICE:UTI Tower, Gn Block, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 051.
UTI Mutual Fund • First Mutual Fund company in India • One of the largest Mutual Funds in the country• Assets under Management: Rs. 56,854 Crs.
60 56.85
50 45.00
40 39.03 35.49
29.52 30
20.62 20.74
20
10
0 Mar 2005 Mar 2006 Mar 2007 Mar 2008 'Jun Sep2008 'Dec
2008 2008
UTI Mutual Fund Wide Range of Schemes for all Needs
71 domestic schemes under Various Fund
categories Domestic Schemes & Offshore Schemes to cater
to whole gamut of your investment needs 80 UTI Financial Centre's (as on Nov 26, ‘07)
International Representative offices at London, Dubai & Bahrain
Strategic Marketing tie-up with 22 PSU Banks, select Private Banks & India Post across the
country
Systematic Investing, Builds Future
A Systematic Investment Plan (SIP) is a disciplined approach to wealth creation. It allows the investor to adopt a systematic and dedicated approach to financial planning by inculcating a regular savings habit.
Instead of investing a large amount at one time, the investor can choose to stagger his investment at regular intervals according to his convenience and ability
As individuals, our financial goals like obtaining income to meet day- to-day financial needs, saving for child’s education, marriage or for a comfortable retirement & a secure financial future can be met by means of a regular SIP
BENEFITS OF SYSTEMATIC INVESTING - TO THE
INVESTOR Rupee Cost Averaging
Mr. A's SIP Investment would have accumulated to approximately 4,383.20 units, where as B's lump sum investment would have acquired only 4,235.30 units
Benefits of Systematic Investing - To the Investor
The Power of Compounding
An early investor accumulates more than the one who comes in later
With fresh capital being invested at periodic intervals, the accumulated investment increases
Rs. 1,000/- invested per month
Start Early
•X starts investing at the age of 30 Early Investment, Always Pays yrs
•He invests Rs. 1000 every month till the age of 60 yrs
•Total Investment: Rs. 3.60 lacs 22.62
•Y starts investing at the age of 40 yrs 11.39
•He invests Rs. 1500 every month till the age of 60 yrs
X Y •Total Investment: Rs. 3.60 lacs @ 10% assumed rate of growth
• At age 60, X’s investment would have appreciated to Rs. 22.62 L & Y’s investment would have appreciated to Rs. 11.39 L • X’s investment would have appreciated to almost double that of Y
Benefits
Convenience
Regular small & manageable outflows each month. UTI SIP can be started with as low as Rs. 1000 p.m.
Hassle-free mode of deduction through salary payments
Take advantage of equity markets through limited
participation thereby minimizing the risk
Professional financial advice from AMFI certified advisors Automatic mode of savings �
Objective : To provide capital appreciation through investments in the stocks of the companies/institutions engaged in the banking and financial services activities.
Fund Type: Open-Ended Equity fundInvestment Plan: GrowthAsset Size (Rs cr.): 110.89 (Jul-31-2009)Face Value (Rs/Unit): Rs. 10Minimum Investment: Rs.5000Launch Date: Apr 07, 2004Benchmark: BSE BankexEntry Load : Nil for investments made after 10.10.2004 and amount >=Rs 2 crore., Entry load 2.25% for investments made after 10.10.2004 and amount < Rs 25 lakhsExit Load : Exit Load 1% for Investment less than Rs 2 crore, if units are redeemed within 3 years from the date of allotment
UTI-Banking Sector Fund Growth
Date NAV03 August 2005 15.36
02 December 2005 15.42
03 April 2006 16.21
03 August 2006 14.73
04 December 2006 21.36
03 April 2007 18.63
03 August 2007 24.53
04 December 2007 32.6
04 April 2008 23.58
05 August 2008 22.95
03 December 2008 16.26
06 April 2009 17.68
04 August 2009 28.19
21 August 2009 27.35
NAV Trend
Equity Value %(Rs in cr.)
Axis Bank 8.9 8.02
Bank Of Baroda 6.22 5.61
Bank Of India 5.09 4.59
Federal Bank 3.77 3.4
Union Bank of India 3.63 3.28
Central Bank of India 3.56 3.21
Housing Development Finance Corporation 3.42 3.09
IDFC 3.3 2.98
Punjab National Bank 3.09 2.78
Oriental Bank of Commerce 2.84 2.56
IndusInd Bank 2.6 2.35
ICICI Bank 19.53 17.62
State Bank of India 14.13 12.74
HDFC Bank 11.69 10.54
Kotak Mahindra Bank 1.7 1.54
Canara Bank 1.49 1.34
Indian Overseas Bank 1.14 1.03
Karnataka Bank 0.69 0.62
Indian Bank 0.5 0.45
Andhra Bank 0.23 0.2
ING Vysya Bank 0.1 0.09
Portfolio as on 31st July.09
Debt Value %(Rs in cr.)
STOCK HOLDING CORPN OF INDIA
LTD 1.38 1.24
AXIS BANK LTD. 1 0.9
ANDHRA BANK 0.99 0.89
SYNDICATE BANK 0.99 0.89
BANK OF BARODA 0.09 0.08
Debt Allocation
Asset Breakdown (Jul-31-2009)
Class Asset Allocation %Equity 88.04
Others / Unlisted 0Debt 4
Mutual Funds 0Money Market 0
Cash / Call 7.94
Net Receivable / Payable 0
ASSET ALLOCATION
Objective: To provide to investors growth of capital over a period of time as well as to make periodical distribution of income from investment in stocks of select growth oriented sectors of the Indian economy Type of Scheme: Open EndedNature: EquityOption: GrowthInception Date: 17 November, 2007Face Value (Rs/Unit) :10Fund Size in Rs. Cr.: 656.46 as on Jul 31, 2009
UTI-Energy Fund
DATES NAV
17 December 2007 14.12
01 January 2008 15.3
01 April 2008 10.72
01 July 2008 8.22
01 September 2008 9.37
01 January 2009 6.55
01 April 2009 6.56
01 July 2009 9.04
31 August 2009 10.17
NAV
0
2
4
6
8
10
12
14
16
18
NAV
NAV Trend
AS ON 21 AUGUST 2009 SECTOR ALLOCATION
Energy 44.19
Engineering 23.26
Metals 10.61
Diversified 8.36
Services 2.85
Construction 1.6
sector ALLOCATION
As on AUG. 2009 ASSET ALLOCATION
EQUITY 92.12
DEBT 3.74
OTHERS 4.14
ASSET ALLOCATION
Company Percentage
ONGC 7.55
Bharat Heavy Ele 7.53
L & T 5.51
Reliance Inds. 5.38
Tata Power Co. 4.48
GAIL (India) Ltd. 3.91
Hind. Petrol 3.53
Bank of Baroda 3.13
ReliancePetrole(Old) 3.11
NTPC 3.1
Top Ten Investors of Fund
Current Status & Profile
Latest NAV 10.17 (21/08/09)
52-Week High 10.17 (21/08/09)
52-Week Low 5.7 (27/10/08)
Fund Category Equity: Speciality
Type Open End
Launch Date November 2007
Risk Grade Not Rated
Return Grade Not Rated Net Assets (Cr)
623.98 (31/07/09)
Benchmark UTI Energy
Fund Type Open-Ended
Investment Plan Growth
Asset Size (Rs cr) 1,778.92 (Jul-31-2009)
Minimum Investment Rs.5000
Last Dividend N.A.
Bonus N.A.
Launch Date Apr 07, 2004
Benchmark BSE 100
Fund Manager Sanjay Dongre
NotesNote:- UTI- Basic Industries Fund renamed as UTI- Infrastructure Fund with effect from May 2, 2006.
Entry Load N.A.
Exit Load 1.00%
Load CommentsExit Load 1% for Investment less than Rs 2 crore, if units are redeemed 3 within 3 years from the date of allotment.
UTI Infrastructure fund
Top Holdings (Jul 31, 09)Equity Sector Value
(Rs cr)Asset
%
Larsen Engineering 115.24 6.48
Reliance Oil & Gas 112.44 6.32
BHEL Engineering 111.52 6.27
Bharti Airtel Telecom 102.53 5.76
ONGC Oil & Gas 69.84 3.93
IOC Oil & Gas 60.21 3.38
Tata Power Utilities 58.56 3.29
Jindal Steel Metals & Mining 51.43 2.89
Reliance Infra Utilities 48.22 2.71
IDFC Banking/Finance 47.20 2.65
Sector % -- 1-Year --
High Low
Engineering 23.95 22.88 17.77
Oil & Gas 13.63 12.53 11.27
Utilities 10.54 7.95 6.86
Cement 9.68 6.24 4.24
Telecom 9.29 9.90 8.72
Metals & Mining 9.29 5.93 4.04
Sector Allocation (Jul 31, 09)
Absolute Returns (as on Aug 31, 09)
Period Returns (%)
1 mth 1.0
3 mths 4.1
6 mths 65.0
1 year 7.6
2 year -4.6
3 year 45.7
5 year 273.3
RETURNS
Absolute Returns (in %)
Year Qtr 1 Qtr 2 Qtr 3 Qtr 4 Annual
2009 -2.9 - - - -
2008 -28.0 -18.4 -2.2 -21.3 -56.6
2007 -9.8 28.0 17.5 28.3 70.5
2006 30.7 -15.7 17.9 18.6 59.5
2005 6.8 5.3 24.7 5.4 54.8
2004 - -20.5 24.1 20.5 12.6
Asset Allocation (%) (Jul 31, 09)
Asset %
Equity 88.1
Others 0
Debt 1.79
Mutual Funds 0
Money Market 0
Cash / Call 10.1
ASSET ALLOCATION
It is good and safe bet compared to stocks but since most the mutual funds have equity component the prospects are largely linked to performance of the stock market. Mutual funds are always better
compare to share market and other deposits.
There are numerous benefits of investing in mutual funds and one of the key reasons for its phenomenal success in the developed markets like US and UK is the range of benefits they offer,
which are unmatched by most other investment avenues..The benefits of mutual fund investment have been broadly split into universal benefits, applicable to all schemes, and benefits applicable
specifically to open-ended schemes.
There is no one mutual fund that will be suitable to all kinds of investors. Hence, mutual fund investors need to identify a suitable fund for them. This would be the first step towards making
successful investments in mutual funds. As mutual funds are not free of any kind of risk.
For the growth of Mutual fund Industry in India investors must be educated- other than the benefit of the tax exemption it is also a very important mode of saving in present day scenario. Mutual Fund
are the now days the largest investor in the stock market.
CONCLUSION:
Table 47: Resource Mobilisation by Mutual Funds(Rupees crore)
Category April-March April-June2008-09 2008-09 2009-10
Net Mobilisation
Net Assets Net Mobilisation
Net Assets Net Mobilisation
Net Assets
1 2 3 4 5 6 7Private Sector -34,017 3,35,527 14,173 4,24,821 81,456 4,67,944Public Sector * 5,721 81,772 24,264 97,078 18,947 1,14,735Total -28,296 4,17,300 38,437 5,21,899 1,00,403 5,82,679* : Including UTI mutual fund.Note : 1. Data exclude funds mobilised under Fund of Funds Scheme.2. Net mobilisation is net of redemption.3. Net assets is for end-period.Source : Securities and Exchange Board of India.
: Resource Mobilization by Mutual Funds
(Rupees crore)
Category April-March April-June
2008-09 2008-09 2009-10
Net Mobilisation Net Assets Net Mobilisation Net Assets Net Mobilisation Net Assets
1 2 3 4 5 6 7
Private Sector -34,017 3,35,527 14,173 4,24,821 81,456 4,67,944
Public Sector * 5,721 81,772 24,264 97,078 18,947 1,14,735
Total -28,296 4,17,300 38,437 5,21,899 1,00,403 5,82,679
* : Including UTI mutual fund.Note : 1. Data exclude funds mobilised under Fund of Funds Scheme.2. Net mobilisation is net of redemption.3. Net assets is for end-period.Source : Securities and Exchange Board of India.
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