1. UTI Mastershare Fund, India’s first such fund, yielded over 15% CAGR returns since inception 30 yrs ago

UTI Mastershare Fund, India’s first such fund, yielded over 15% CAGR returns since inception 30 yrs ago

UTI Mastershare Fund, which completes 30 years of existence this month, has delivered compound annual growth rate (CAGR) returns in excess of 15% since its inception in 1986. The fund, which was country’s first equity-oriented equity fund, has given uninterrupted dividends in the last three decades, and is known to be a conservative fund.

By: | Published: October 4, 2016 6:12 AM

UTI Mastershare Fund, which completes 30 years of existence this month, has delivered compound annual growth rate (CAGR) returns in excess of 15% since its inception in 1986. The fund, which was country’s first equity-oriented equity fund, has given uninterrupted dividends in the last three decades, and is known to be a conservative fund.

Initially, the fund started as a close-ended equity scheme, but was turned open-ended in early 2000. UTI Mastershare has generated a CAGR return of 15.14% against the benchmark return of 13.73% since inception. To highlight the growth of investment into the fund that an amount of R10,000 invested at inception has become over R6.8 lakh as against around R4.7 lakh as per benchmark-S&P BSE 100. The scheme has generated around 70 times returns in the last 30 years.

“This fund was large cap-oriented fund and it has remained same since I took over 10 years ago. Earlier this scheme had value style and had some bias towards mid-caps. But now we follow the strategy of growth at reasonable price (GARP) and maintain a well-diversified portfolio and avoid sector and stock concentration every time. This has helped the fund in generating steady returns and has helped the fund to weather the market phases effectively in the past, said Swati Kulkarni, executive vice-president and fund manager, UTI Asset Management Company.

Till now UTI Mastershare has distributed Cumulative Gross Dividend at 1230% aggregating to R2,477 crore since its inception. Officials in the industry say that, completion of 30 year of one scheme is indeed a big step for equity funds as its very easy to outperform market in bull as well as bear phase, but very difficult to register positive returns in volatile or flat markets. In the last one year fund has given returns of 9.14%.

It has given returns of 13.94% and 11.89% for five year and 10 year respectively, says the data from Value Research.

“UTI Mastershare might not be chart-topper, but its very highly consistent performer. Also their dividend policy is quite unique in the industry as they give dividends irrespective of market conditions. This fund is for investors who want low volatility with consistent performance,”said Vidya Bala, head mutual funds research at FundsIndia.com. “In the past, we have seen funds such as HDFC Equity, Reliance Growth and Franklin India Prima fund have completed their two decade journey in the market.”

3 decade journey

UTI Mastershare Fund was country’s first equity-oriented equity fund

Was launched in 1986 as a close-ended equity scheme, but turned open-ended in 2000

Generated 70 times returns

UTI Mastershare has distributed cumulative gross dividend at 1,230% aggregating to R2,477 crore

In the past one year, the fund has generated returns of 9.14%

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