UTI MUTUAL FUND

K.Geetha
UTI MUTUAL FUND
INTRODUCTION
Unit Trust of India (UTI) is a statutory public sector investment institution which
was set up in February 1964 under the Unit Trust of India Act, 1963.UTI began operations in
July 1964. It provides opportunity for small-savers to invest in areas where their risk is
diversified.

OBJECTIVES
The primary objectives of the UTI are,
To encourage and pool the savings of the middle and low income groups.
To enable them to share the benefits and prosperity of the industrial development in the
country.
FUNCTIONS OF UTI
The UTI functions are,
To accept discount, purchase or sell bills of exchange, promissory note, bill of lading,
warehouse receipt, documents of title to goods etc.,
To grant loans and advances.
To provide merchant banking and investment advisory service.
To provide leasing and hire purchase business.
To extend portfolio management service to persons residing outside India.
To buy or sell or deal in foreign exchange dealings.
To formulate unit scheme or insurance plan in association with or as agent of GIC.
To invest in any security floated by the Central Government, RBI or foreign bank.

INTRODUCTION TO THE COMPANY

UTI MUTUAL FUNDS

Vision
To 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 organisation known for best corporate

governance

SWOT Analysis of UTI Mutual Fund

Strengths of UTI-MF
Well-positioned to capitalize on favorable macro-economic conditions and
industry dynamics.

Large focused asset manager with diverse fund offerings, experienced fund
managers and record of steady AUM growth.

 A scheme for every class of citizenry

Broad and stable client base and multiple distribution channels.
Strong brand recognition
Profitable structure benefiting from large size, automated and integrated

systems, and high proportion of equity and balanced/hybrid funds.

First in the industry in terms of Equity and Balanced Schemes AUM

Experienced professional management and well established state-sponsors

with access to PSU business opportunities

Weakness:
Poor service conditions
Less penetration in rural areas
AUM wise 4th in number

Opportunity
Stability through increased brand awareness, market penetration and
Service offerings

High untapped market in the semi urban and rural areas

Increased saving habit among people provides a great opportunity for funds
mobilization

 Other emerging opportunities in the financial markets

Introduction
Vision
To 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 organisation known for best corporate governance

Genesis
Jan 14, 2003 is when UTI Mutual Fund started to pave its path following the vision of UTI Asset Management Company
Limited, who has been appointed by the UTI Trustee Company Limited for managing the schemes of UTI Mutual Fund and
the schemes transferred/migrated from the erstwhile Unit Trust of India.
The UTI Asset Management Company provides professionally managed back office support for all business services of UTI
Mutual Fund (excluding fund management) in accordance with the provisions of the Investment Management Agreement,
the Trust Deed, the SEBI (Mutual Funds) Regulations and the objectives of the schemes. State-of-the-art systems and
communications are in place to ensure a seamless flow across the various activities undertaken by UTIMF.
UTI AMC is a registered portfolio manager under the SEBI (Portfolio Managers) Regulations, 1993 on 3rd February 2004, for
undertaking portfolio management services and also acts as the manager and marketer to offshore funds through its 100 %
subsidiary, UTI International Limited, registered in Guernsey, Channel Islands.
Assets Under Management
UTI Asset Management Company presently manages a corpus of over Rs. 56,854 Crores as on 31st Dec 2007 (source:
www.amfiindia.com) . UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs of every
class of citizenry. It has a nationwide network consisting 79 UTI Financial Centres (UFCs) and UTI International offices in
London, Dubai and Bahrain. With a view to reach to common investors at district level, 3 satellite offices have also been
opened in select towns and districts.
We have a well-qualified, professional fund management team, who have been highly empowered to manage funds with
greater efficiency and accountability in the sole interest of unit holders. The fund managers are also ably supported with a
strong in-house securities research department. To ensure better management of funds, a risk management department is
also in operation.
Reliability
UTIMF has consistently reset and upgraded transparency standards. All the branches, UFCs and registrar offices are
connected on a robust IT network to ensure cost-effective quick and efficient service. All these have evolved UTI Mutual
Fund to position as a dynamic, responsive, restructured, efficient and transparent SEBI compliant entity.

Threats:
Increased competition among local AMCs

 Threat of increased entry of Foreign players in the industry

High level of volatility of the stock market
Rising inflation could reduce savings of people and thus investments

PRODUCTS OF UTI MUTUAL FUND

Equity schemes
UTI Banking Sector Fund

UTI Contra Fund

UTI CCP Advantage

UTI DYF

UTI Energy Fund

UTI Equity Fund

UTI Infrastructure

UTI Equity Tax Savings Plan

Fund

UTI Leadership Equity Fund

Fund

UTI Master Index

 UTI Master plus Unit Scheme

UTI Master share

Unit Scheme
UTI Master Value Fund
UTI MNC Fund
UTI Opportunities Fund

UTI Mid-cap Fund

UTI Nifty Index Fund
UTI Pharma &

Healthcare Fund
UTI Sunder

UTI Services

Industries Fund
UTI Top 100 Fund

UTI Transportation &

Logistics Fund

UTI Wealth Builder Fund-SeriesII

Debt schemes

UTI Bond Fund

.UTI Fixed Maturity

Plan
UTI Floting Rate Fund

.UTI Gilt Advantage

Fund
UTI G-Sec Fund

.UTI Liquid Fund

UTI Treasury Advantage Fund

.UTI Mahila Unit Scheme

UTI-MIS-Advantage Plan

.UTI-Money Market Fund

. UTI-Monthly Income Scheme

.UTI-CRTS

.UTI-Variable Investment Scheme-ILP

Balanced Schemes

UTI Balanced Fund

. UTI-childrens Career Plan (UTI-CCP)
. UTI-Retirement Benefit Pension Fund (UTI-RBP)
. UTI-Unit Linked Insurance Plan (UTI-ULIP)

Liquid Schemes
UTI Money Market Funds
UTI Liquid Cash Plan
UTI Liquid Advantage Fund
Most Opted Schemes by Investors
Dividend Yield Fund
UTI Mastershare Unit Scheme
Unit Linked Insurance Plan (ULIP)

Parties Involved in mutual funds

Investors: People who invest money in the mutual fund
Trustees: Trustees are the people within a Mutual Fund organization, who are responsible for ensuring
that investors interests are taken care of.
Asset Management Company (AMC): AMC manages the investment portfolios of schemes
Distributors: A person or a party responsible for bringing investors into the schemes of a MF
Registrars: The Registrar keeps a track of the investors investments and dis-investment
Custodian / Depository: An entity, usually a bank or Trust company, which holds and safeguards
securities owned by a Mutual Fund
Fund Manager
Fund manager is the person who establishes and manages the mutual funds, markets them and manages
their general administration

Auditor
Auditors are the independent accountants retained by the Mutual Fund Manager to audit each year, and
report on the financial statements of the fund.

Equity
Date

Debt

Gross Purch.
(Rs. Cr.)

Gross Sales
(Rs. Cr.)

Gross Sales
(Rs. Cr.)

Net Invest.
(Rs. Cr.)

2014

14483.10

17369.00

-2885.90

196063.60

126672.10

69391.50

2013

105661.60

126853.60

-21192.00

1477624.40

1026944.50

450679.90

2012

119298.10

139922.40

-20624.30

1402911.40

946358.10

456553.30

2011

131284.80

124631.80

6653.00

942341.50

649853.50

292488.00

2010

160040.60

187916.30

-27875.70

744471.60

549753.30

194718.30

2009

182393.30

187706.30

-5313.00

530418.70

331302.90

199115.80

2008

180792.70

166800.30

13992.40

316703.10

268189.40

48513.70

2007

183818.21

177623.15

6195.06

240399.66

177788.04

62611.62

2006

136011.99

120787.25

15224.74

136702.67

89047.20

47655.47

2005

79525.00

66257.87

13267.13

111956.52

71023.96

40932.56

2004

42327.66

43294.15

-966.49

54686.26

43523.06

11163.20

2003

28579.80

27950.51

629.29

58334.22

38536.48

19797.74

2002

15202.80

18093.45

-2890.65

45575.00

31383.87

14191.13

2001

3596.16

4333.21

-737.05

8991.97

6124.11

2867.86

Total

1383015.82 1409539.29

Net Invest. Gross Purch.

(Rs. Cr.)
(Rs. Cr.)

-26523.47 6267180.60 4356500.52 1910680.08

Asset Under Management - UTI MF

90000
80218

80000

58922

60000
50000
40000
30000
20000

69450

67189

70000
48983

48754

2008

2009

35488
29519
20740

10000
0

2005

2006

2007

2010

2011

2012

2013

Asset Under Management - UTI MF

90000
80218

80000

58922

60000
50000
40000
30000
20000

69450

67189

70000
48983

48754

2008

2009

35488
29519
20740

10000
0

2005

2006

2007

2010

2011

2012

2013

The Organization of a Mutual Fund is how the mutual funds are controlled. A number of
entities are involved in the Organization of a Mutual Fund. This helps in the proper

management of the mutual fund portfolio.

The Organization of a Mutual Fund contains entities such as

- See more at: http://business.mapsofindia.com/mutualfunds/organization.html#sthash.dmN9apyM.dpuf

ADVANTAGES OF MUTUAL FUNDS

The Advantages of Mutual Funds encourage investors to invest in the same. The Mutual funds are very
popular among investors as it is professionally managed and it offers a wide variety of advantages.
ADVANTAGES OF MUTUAL FUNDS

The Mutual Funds are one of the best financial instruments offered to the public by the finance corporations.
The Mutual Funds are collective investments, and use that money as investment in various stocks, bonds, and
other securities to earn interest and disburse dividends.Advantages of Mutual Funds are the primary reason for
the
popularity
of
the
mutual
funds.
The Mutual Funds offers easy access to invest in the complex financial market. Major advantages of Mutual
Funds are professional management, diversification and liquidity.
ADVANTAGES OF MUTUAL FUNDS-OVERVIEW

Flexibility: The investments pertaining to the Mutual Fund offers the public a lot of flexibility by
means of dividend reinvestment, systematic investment plans and systematic withdrawal plans.

Affordability: The Mutual funds are available in units. Hence they are highly affordable and due to
the very large principal sum, even the small investors are benefited by the investment scheme.

Liquidity: In case of Open Ended Mutual Fund schemes, the investors have the option of
redeeming or withdrawing money at any point of time at the current rate of net value asset.

Diversification: The risk pertaining to the Mutual Funds is quite low as the total investment is
distributed in several industries and different stocks.

Professional Management: The Mutual Funds are professionally managed. The experienced
Fund Managers pertaining to the Mutual Funds examine all options based on research and experience.

Potential of return: The Fund Managers of the Mutual Funds gather data from leading economists
and financial analysts. So they are in a better position to analyze the scopes of lucrative return from the
investments.

Low Costs: The fees pertaining to the custodial, brokerage, and others is very low.
Regulated for investor protection: The Mutual Funds sector is regulated by the Securities
Exchange Board of India (SEBI) to safeguard the rights of the investor.

DRAWBACKS OF MUTUAL FUNDS

ABSTRACT:

The Drawbacks of Mutual Funds are the major obstacles for the growth of the same. Management risks,
trading limitations and absence of taxes are some of the major drawbacks of mutual funds.
THE DRAW BACKS OF MUTUAL FUNDS

Fees and commissions: The Mutual funds charge administrative fees to meet the daily expenses.
Many funds charge brokerage or 'loads' to pay financial planners or financial consultants, brokers. In
case a shareholder does not use the services of financial adviser, he still has to pay a sales commission.

No Guarantees: All investments bear risk factors. The Mutual Funds are no different. It depends
on the stock market. A fall in the stock market would trigger a fall in the value of the mutual fund shares.
Although the risk factor pertaining to Mutual funds are much lower compared to Mutual Funds.

Inefficiency of Cash Reserves: The Mutual Funds maintain big cash reserves, for situations such
as a number of large withdrawals. The investors are provided with liquidity, and a major portion of the
financial resources is maintained as cash, and it is not invested in some assets.

Management risk: The investment pertaining to the Mutual Funds depends on the fund manager
and his selection of the mutual fund portfolio, which is based on speculation. If things do not go as
expected, the investments may not earn enough money.

Taxes: The proceeds from the sale of mutual funds are taxable, even if the same is reinvested in
mutual funds.

No Insurance: The Mutual funds are regulated by the central government. However mutual funds
are still not insured against losses.

Trading Limitations: The Mutual Funds usually have high liquidity, but most of the mutual funds,
such as open-ended funds, are bought or sold at the end of the day.

Loss of Control: In case, if the mutual funds are managed by the investor himself, the portfolio
management may go bad and have an adverse effect on the earnings from the investment.

20 Mar 2013UTI Equity Fund has won the Morningstar India Fund Awards 2013 as Best Large Cap Equity
Fund
11 Feb 2013UTI Short Term Income Fund winner of Business World's survey of the Best Performing Mutual
Funds in the Debt: Short Term category
28 Feb 2012UTI Mutual Fund Wins 8 ICRA Mutual Fund Awards 2012 - Awarded Star Fund House Of The
Year DEBT
07 Feb 2012UTI Mutual Fund has been declared as a winner for Customer & Brand Loyalty in the Mutual
Fund Sector