The UTI Infrastructure Fund is an infrastructure sector-specific equity mutual fund. The portfolio includes companies that are involved in or benefit from the infrastructure segment. This fund has been operational since April 2004. UTI Asset Management Company is a public sector undertaking and is also the oldest mutual fund house in the country.
Type of fund
This is an open ended infrastructure thematic equity mutual fund.
Investment objective
The objective here is to provide income generation and/or mid to long term capital appreciation through investments primarily in equity and equity related instruments of companies which are the direct or indirect stakeholders in the growth of infrastructure sector in India.
Fund information
| Inception date | 07/04/2004 |
| CRISIL rank | Rank 4 in Infrastructure sector funds |
| Schemes |
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| Entry load | 0% |
| Exit load |
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| Minimum investment |
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| SIP | Available. |
| Product label – Risk and target investors | High risk. Meant for long term investors looking at capital appreciation and income distribution through sector specific equity based investments. Diversified large-mid cap oriented fund having moderate style funds is ideal for regular equity investors. |
| Benchmark | S&P BSE 100. This index was compiled in 1989 and uses the same methodology of computation of Free-Float index and determination of free-float factors as the more commonly known BSE Sensex index. |
| SWP | Yes. Minimum withdrawal amount of Rs.1,000. |
| STP | Available |
| Redemption | Proceeds to be dispatched within 10 days |
| Taxation (on investment and on redemption) | As per applicable sections under the Income Tax Act. |
Fund manager(s)
Mr Sanjay Ramdas Dongre has a bachelor’s degree in B.E. (Instrumentation) and PGDM from IIM Calcutta. He has previously worked with Reliance Petrochemicals limited and has been associated with UTI AMC since 1994 starting out as a debt analyst. He is currently a Senior Fund Manager at UTI AMC and handles other funds from UTI AMC such as UTI – MEPUS.
Investment philosophy
This is a themed scheme wherein investments are made in equities or equity related instruments of companies that are directly or indirectly involved in the growth of infrastructure sector in the country. As the sector looks towards fresh impetus from the newly-elected government, the fund aims to capitalize on this in the long run through long term investments predominantly in large and mid cap companies.
Portfolio – Sector / Top 10 holdings*
| Name | Sector | Class | Allocation (%) |
| Axis bank Ltd | Financial | Equity | 7.38 |
| Larsen & Toubro Ltd | Diversified | Equity | 6.95 |
| State Bank of India Ltd | Energy | Equity | 6.46 |
| Shree Cement Ltd | Construction | Equity | 6.06 |
| Cummins India Ltd | Engineering | Equity | 5.49 |
| ICICI Bank Ltd | Financial | Equity | 4.77 |
| Bharat Forge Ltd | Auto | Equity | 4.35 |
| Ultratech Cement Ltd | Construction | Equity | 4.07 |
| NCC Ltd | Construction | Equity | 3.89 |
| Adani Ports and SEZ Ltd | Services | Equity | 3.78 |
As on 31st July 2015
Risk measures
| Standard Deviation | 19.0% |
| Sharpe Ratio | 0.52 |
| Alpha | 0.41% |
| Beta | 1.08 |
Performance
| AUM* | Rs.1,546 crores (Growth) |
| NAV** |
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| Expense Ratio |
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As on 30th June 2015
As on 4th September 2015
Benchmark comparison
| Compounded Annualised Returns | Scheme Returns (%) | Benchmark Returns (%) |
| Returns for last 1 year | 12.80 | 9.32 |
| Returns for last 3 years | 17.74 | 17.04 |
| Returns for last 5 years | 4.15 | 9.09 |
| Returns since inception | 14.91 | 14.81 |
As on 30th June 2015
Expert view of the fund
Being a sector specific fund, the UTI Infrastructure Fund can show volatility in the short term due to market cycles. However, the infrastructure segment in the country is in focus again with the government touted to invest heavily in it in the coming years. As such, the fund can be a good option to investors if they are willing to wait out the volatility in markets and look at the long horizon. Returns have more or less matched the benchmark except for a few time frames. You should consult with your financial advisor before investing in any mutual fund scheme.
How to apply
Online and offline means are available to invest in UTI Infrastructure Fund.
- Online
The official website of UTI has an online application portal which can be used to fill and submit forms and related documents. You can also register for mobile transactions by giving ECS/Standing Instructions which will be processed within 25 days. Alternatively, you can use third party website for applying to mutual fund schemes, however it is advisable to perform background checks on the dealer before making any investment decision.
- Offline
For offline investors, there are many UTI AMC branches located conveniently throughout the country. You can approach any of the branches and fill up relevant forms and submit related documents for processing. You can also download the forms online and fill and submit to respective branch. You can also use the services of third party vendors after due consideration.
