Its not just the FIFA World Cup that has thrown up surprises for some and disappointments for many. US64 investors will not be receiving dividend this year for the first time. That's another disappointment in a history of disappointments with US64. The question is should they still remain invested in US64 or consider some of its better performing peers.
First lets consider the performance. US64 (a balanced fund) has appreciated 8.9% over the last 6 months. This is a satisfactory performance in itself, but not so significant when compared to some of its balanced peers. Over the same period, Zurich Prudence appreciated 17% (absolute), IDBI-PRIN (15%) and Pioneer Balanced (14%).
The BSE Sensex over the same period (6-month) has appreciated just 0.6%, vis-a-vis US64's 8.9%. On the face of it, that's a commendable performance. However, when we consider that US64 continues to function more like a diversified equity fund with its borrowings accounting for over 40% of net assets, then this performance doesn't look as great. US64 must be compared to diversified equity funds in its peer group rather than balanced funds for a truer picture. When you compare US64 to some of the dominant equity funds in the industry Zurich Capital Builder (up 25% over 6 months absolute), Zurich Equity (24%), Franklin Growth (15%), Templeton Growth (15%), Alliance Equity (14%), Birla Advantage (12%), its performance doesn't seem so bright.
And if one were to consider UTI's over scorecard? We have done just that. With assets under management amounting to Rs 487 bn (as on June 2002), UTI's share accounts for 47% of the industry. The private sector is closing in with 44% market share.
What's the score?
| Open-ended schemes |
NAV (Rs) |
1-WK(%) |
1-MTH(%) |
6-MTH(%) |
1-YR(%) |
INCEP. (%) |
| UNIT SCHEME 1964 |
6.5 |
-0.3 |
9.3 |
11.5 |
- |
30.7 |
| UTI SEC-PETROLEUM |
18.5 |
-3.0 |
2.7 |
55.7 |
26.0 |
25.0 |
| UNIT SCHEME 95 G |
19.3 |
-0.9 |
3.8 |
14.2 |
17.2 |
17.0 |
| UTI SEC-PHARMA |
10.7 |
-2.2 |
0.2 |
7.7 |
14.9 |
-3.0 |
| UTI GSEC G |
14.3 |
0.0 |
2.2 |
4.0 |
14.8 |
13.7 |
| UTI BOND FUND |
15.3 |
0.3 |
1.2 |
5.5 |
12.7 |
12.5 |
| PRIMARY EQUITY |
13.5 |
-1.5 |
4.7 |
12.1 |
11.7 |
5.5 |
| UTI SEC-BRAND VAL |
7.9 |
-2.8 |
1.0 |
5.1 |
11.3 |
-5.6 |
| UTI EQUITY TAX SAV. |
9.9 |
-2.4 |
1.8 |
13.9 |
10.8 |
1.2 |
| MASTERGROWTH 93 |
13.6 |
-2.7 |
4.1 |
15.8 |
10.7 |
5.8 |
| MASTERGAIN 92 |
9.9 |
-1.7 |
7.7 |
17.5 |
9.7 |
1.2 |
| UGS 10000 |
10.7 |
-1.0 |
1.6 |
8.3 |
8.7 |
1.9 |
| GRANDMASTER 1993 |
9.2 |
-2.5 |
3.3 |
10.1 |
8.6 |
-0.6 |
| MASTERSHARE 91 |
16.5 |
-1.3 |
6.4 |
13.9 |
7.4 |
2.7 |
| UTI MONEY MKT |
16.1 |
7.7 |
7.4 |
6.6 |
7.4 |
9.7 |
| UTI SEC- SOFTWARE |
7.7 |
-4.9 |
-2.2 |
3.9 |
-0.9 |
-11.3 |
| UTI SEC-SERVICE SEC |
17.4 |
-2.8 |
1.5 |
11.2 |
-1.6 |
26.3 |
| UTI NIFTY INDEX |
6.4 |
-2.6 |
1.3 |
1.1 |
-2.9 |
-15.3 |
| UTI-MASTER INDEX |
9.8 |
-2.2 |
2.1 |
-0.4 |
-3.7 |
-1.5 |
(NAVs as on June 24, 2002. Growth over 1-Yr is annualised compounded)
For a more decisive picture, investors need to compare each of the funds listed above with its peer category, just as we have done with US64 earlier. This will give investors a more critical account of UTI's performance.
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