UTI S&P BSE Housing Index Fund is an open-ended scheme tracking S&P BSE Housing TR. The NFO period ends June 5th 2023. Does it make sense to invest in it?
The S&P BSE Housing index chooses stocks from the S&P BSE 250 LargeMidCap Index classified in housing-related industries. Constituents are weighted by float-adjusted market capitalization, subject to a single constituent weight cap of 5%. The launch data is Jun 27, 2022, with data available from Dec 16, 2016.
The constituents of the S&P BSE Housing Index as on April 28, 2023, are: (Source: Scheme SID)
1 DLF Ltd 5.82%
2 Grasim Industries Ltd 5.34%
3 Ultra Tech Cement Ltd 5.16%
4 Housing Development Finance Corp 5.14%
5 Asian Paints Ltd 5.04%
6 Ambuja Cements Ltd 5.02%
7 Havells India Ltd 5.00%
8 Shree Cement Ltd 4.64%
9 Voltas Ltd 4.30%
10 Supreme Industries 4.15%
11 Astral Limited 4.04%
12 Dalmia Bharat Ltd 3.79%
13 Godrej Properties Ltd 3.62%
14 Crompton Greaves Consumer Electricals Ltd 3.59%
15 ACC Ltd 3.51%
16 Berger Paints India Ltd 3.49%
17 Polycab India Ltd 3.28%
18 Phoenix Mills Ltd 3.23%
19 Macrotech Developers Ltd 2.63%
20 Oberoi Realty Ltd 2.51%
21 LIC Housing Finance Ltd 2.45%
22 J.K. Cement Ltd. 2.40%
23 Dixon Technologies (India) Ltd 2.25%
24 Ramco Cements Ltd 2.21%
25 Kajaria Ceramics Ltd. 2.13%
26 Prestige Estates Projects Ltd 1.62%
27 AAVAS Financiers Ltd 1.45%
28 Kansai Nerolac Paints Ltd. 1.21%
29 Whirlpool of India Ltd 0.99%
Does it make sense even to become interested in UTI S&P BSE Housing Index Fund?
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The short answer is a big no. The last five performance of S&P BSE Housing (TR) vs S&P BSE SENSEX (TR) vs S&P BSE 250 LargeMidCap Index (TR) sources from SPJglobal is shown below.
The last five year returns are:
- S&P BSE Housing (TR) 9.69%
- S&P BSE SENSEX (TR) 13.71%
- S&P BSE 250 LargeMidCap Index (TR) 12.80%
Why would you bother buying UTI S&P BSE Housing Index Fund, which is almost certain to have a higher expense ratio than a Nifty or Sensex index fund? Please don’t!