UTI Master share Unit Scheme is India’s first equity-oriented fund (launched in October 1986) and has a track record of wealth creation of over 35 years. UTI Mastershare Unit Scheme isan open-ended equity scheme which predominantly aims to invest in large cap companies having competitiveadvantage in their respective fields. It follows an investment style of Growth at Reasonable Price (GARP) for stock picking. The Fund aims to invest in companies that are fundamentally strong with controlled borrowings, consistent revenue growth, focus on profitability, higher return on capital than cost of capital and consistent operating cash-flows generation. Such companies may generate free cash flows for future expansion and avoid dilution of existing shares.
Owing to this combined approach of GARP plus Competitive Franchise, UTI Mastershare Unit Scheme may invest in companies where, The market is underestimating the companies’ ability to sustain growth over the long term or the benefits of pricing power and the business is capital intensive but the companies invest prudently and execute efficiently. The growth trajectory is improving through industry wide phenomena like favourable demand cycle, consolidation, clearances of regulatory hurdles or through company specific factors like cost competitiveness and prudent capacity expansion.
The companies having opportunities to reinvest cash flows at high Return on Capital Employed (RoCE)UTI Mastershare Unit Scheme, being categorized as a Large Cap Fund,has a portfolio of leading companies such asICICI Bank Ltd.,Infosys Ltd., HDFC Ltd.,Bharti Airtel Ltd.,Reliance Industries Ltd., Axis Bank Ltd. HDFC Bank Ltd., Maruti Suzuki India Ltd.,Kotak Mahindra Bank Ltd., andTata Consultancy ServicesLtd. and the top 10 stocks account for about 50% of the portfolio. The Scheme is currently overweight on Automobile and Auto Components, Consumer Services,Telecommunication,Consumer Durables and Capital Goodsand underweight on Oil, Gas& Consumable Fuels, FMCG,Metals& Mining,Power and Construction Materialsas of November 30, 2022. The Fund has a corpus of over Rs. 11,000 crore with over 7.50 lakh live investor accounts as on November 30, 2022. The Fund aims at obtaining capital appreciation / or income distribution over a long-term, follows a disciplined approach to invest as stated above and has maintained a stream of annual dividends every year since its inception
