UTI Fund Managers See Foreign Inflows Slowing Down

New Delhi, September 23: | Updated: Sep 24 2003, 05:30am hrs
Fund managers in the countrys largest fund house UTI Mutual Fund are turning cautious with foreign portfolio inflows witnessing a slowdown. The industrys biggest equity schemes like UTI Mastershare and UTI Mastergain have been booking profits.

Fund managers at UTI are cautiously optimistic especially when the markets are going through a correction mode. Biggest equity scheme UTI Mastershare, which has a corpus of Rs 1,309 crore as on August 29, 2003, has resorted to selective profit-booking and have been making fresh investment in stocks that had either not rallied significantly or offered good long-term potential for appreciation.

FII flows are now showing signs of slowing down. We believe the markets are likely to take a breather going forward for the next one or two months. Mastershare would be cautious in making fresh investments, says UTI MFs latest bulletin.

Mastershare has almost 80 per cent of its corpus invested in equity and the balance is in liquid assets. Its top five holdings are Ranbaxy Labs (6.83 per cent), Infosys Tech (6.4 per cent), ITC Ltd (6.3 per cent), Bharti Tele-Ventures Ltd (5.34 per cent) and Hindalco Industries (4.87 per cent).

In UTI Mastergain also, which is also one of the largest equity schemes in the industry, the mutual fund says, Our outlook could be best described as cautious optimism.

Mastergain, which has a corpus of Rs 1,136 crore, has most of its corpus invested in old economy stocks which have rallied sharply. Top five holdings of the scheme include Reliance Industries (9.21 per cent), ITC (6.48 per cent), Infosys Tech (4.18 per cent), Hindustan Petro (4.11 per cent) and National Aluminium (3.87 per cent).