Last Updated on October 8, 2023 at 1:38 pm
UTI Opportunities Fund is a fund with a large-cap tilt that can pick stocks from the BSE 100 universe. Launched in Jul 2005, it has recently hit a rough patch and a fund manager change. A look at its performance.
Like with all my mutual fund reviews, the focus (at least mine) is on the method and the tools used. The fund is only an excuse to showcase freefincal tools. This review should not be treated as investment advice.
Before we look at detailed results, anyone can do a simple analysis of the funds performance at Value Research.
1: Do not compare peers. It is an apple vs orange comparison.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
2: Head over to the performance tab in the fund page and you will sea graph like this.
Set the duration as 3Y and place your mouse on the scroll bar (marked by the oval) and slowly move it to the left. Then each frame you see is a 3Y window. This is a simple way to check if the fund has beat its benchmark.
In the above frame, I have selected a from date as Sep 2014. This is to show that the fund has underperformed the BSE 100 price index (dividends not included) for more than two years now.
More importantly, it shows that the funds poor run started well before Swati Kulkarni took over from Anoop Bhaskar as the fund manager in Jan 2016.
Before we discuss the investment strategy, let us have a look at its performance against BSE 100 Total Returns Index (dividends are assumed to be reinvested).
Performance Fingerprint
If we look at the performance of the fund each month for the last 9 years and asked how it fared in the below graph,
we get using the Fingerprinting Tool: A Visual aid foAnalysingng Mutual Fund Performance
A pretty mixed bag! And this in the last 3Y,
Rolling Lump Sum Returns: 3 years
If we consider every possible 3Y period from 31st Jan 2007 to Feb 10th 2017, we will get 1731 periods. For example from 31st Jan 2007 to 30th Jan 2010 (1st period)
from 31st Jan 2007 to 30th Jan 2010 (1st period)
from 1st Feb 2007 to 31st Jan 2010 (2nd period) and so on.
The returns calculated for every such 3 year period is shown below, followed by similar data for 5Y periods.
Rolling Lump Sum Returns: 5 years
The recent underperformance of the fund is immediately clear.
Rolling SIP Returns: 3 years
If you were to do the same analysis for 3Y and 5Y SIP periods, this is what you would get.
Rolling SIP Returns: 5 years
Here again, the underperformance in the recent past is clear.
Download the Mutual Fund SIP and Lump Sum Rolling Returns Calculators
Normally, I would say, “keep an eye”, if you are an existing investor. Regular readers may know that I have been more than tolerant with HDFC Equity and HDFC Top 100. It is certainly not a bad idea to give this time some more time.
However, two statements in its scheme information document makes me concerned a bit.
The main highlight of this scheme is to respond to the dynamically changing Indian economy by moving its investments amongst different sectors as prevailing trends change. The scheme will allow the fund manager to invest in select sectors based on his views of the macro economy.
UTI-Opportunities Fund will predominantly invest in 4 to 5 sectors that are expected to outperform the broader market in the short to medium-term.
As markets evolve and grow, new opportunities for growth keep emerging. UTI Opportunities Fund would endeavor to capture these opportunities to generate wealth for its investors.
The aim of the scheme is to outperform plain vanilla equity funds, which are more diversified but at the same time minimise the risk arising from pure sector funds while generating a reasonable return.
It says it will dynamically respond to changes in the economy in the short and medium term (which should be about 3-5Y) and also aim to outperform typical diversified equity funds.
If a fund makes a statement such as this, then peer comparison becomes mandatory. I would expect it to do reasonably well in a category over at least 5Y if not 3Y. If I look at its MorningStar page, that is not the case. It’s rank over 5Y is 56.
The only thing in its favour is the low portfolio turnover. Most of its portfolio appears to be unchanged in the last few years. Perhaps the fund manager is waiting. Only time will tell if this is a good strategy or not.
If you are an existing investor, you can track the returns month by month from the date in you invested using the Mutual Fund SIP XIRR Tracker. Keep an eye on the performance and if it does not pick up, or if you currently not satisfied, then consider a switch.
For new investors, I would suggest staying away from funds that aim to beat other diversified funds. This unnecessarily hikes expectations and stress.
Ask Questions with this form
If you have a question, let me know using this form. I will respond to them next week. I welcome tough questions. Please do not ask for investment advice. Before asking, please search the site if the issue has already been discussed. Thank you.
[contact-form][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Comment’ type=’textarea’ required=’1’/][/contact-form]
Pune Investor Workshop Feb 26th, 2017
The second Pune workshop will be held on Feb 26th, 2017. You can register for this via this link
You Can Be Rich Too With Goal-Based Investing
Gift it to your Friends and Relatives whom you care more. Already follower of Pattu and Subra’s forum. Ordered 4 more copies to give gift to my friends and eagerly waiting to read
The best book ever on Financial Freedom Planning. Go get it now!
Your first investment should be buying this book
The (nine online) calculators are really awesome and will give you all possible insights
Thank you, readers, for your generous support and patronage.
Amazon Hardcover Rs. 318 20% OFF
Kindle at Amazon.in (Rs. 244.30)
Google Play Store (Rs. 244.30)
Infibeam Now just Rs. 307 use love10 to get additional 10% OFF.
If you use a mobikwik wallet, and purchase via infibeam, you can get up to 100% cashback!!
- Ask the right questions about money
- get simple solutions
- Define your goals clearly with worksheets
- Calculate the correct asset allocation for each goal.
- Find out how much insurance cover you need, and how much you need to invest with nine online calculator modules
- Learn to choose mutual funds qualitatively and quantitatively.
More information is available here: A Beginner’s Guide To Make Your Money Dreams Come True!
What Readers Say
Also Available At
Bookadda Rs. 371. Flipkart Rs. 359
Amazon.com ($ 3.70 or Rs. 267)
Google Play Store (Rs. 244.30)
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 7000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 2,500 investors and advisors use this!
Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)