The UTI Mastershare Unit Scheme is India’s first equity oriented fund (launched in October, 1986) and has a track record of wealth creation for over 35 years.
The UTI Mastershare Unit Scheme is an open ended equity scheme, which invests primarily in large cap companies and has a competitive advantage in its field. The scheme follows a fair price growth (GARP) investment style for stock selection. This means that the investor decides how much he should pay to buy the stock in the portfolio, taking into account the growth in the company’s revenue.
The objective of the UTI Mastershare Unit Scheme is to invest in companies that offer fundamentally strong, long-term good returns while controlling debt, sustainable growth in revenue, focusing on profitability and higher return on capital than capital expenditure as well as generating a steady flow of cash. Such companies generate free cash flow for future expansion and avoid dilution of existing stocks.
In addition to GARP, the competitive approach of competitive franchises enables the UTI Mastershare Unit Scheme to invest in companies that underestimate the ability of market companies to sustain long-term growth or sustain the benefits of pricing power.
The pace of growth in the industry is improved through company-centric factors such as favorable demand cycle, consolidation, removal of regulatory barriers or cost competitiveness, appropriate expansion of capacity. Businesses need capital, but companies make reasonable investments, implement effectively.
Companies have the opportunity to reinvest cash flow at a higher return on capital employed (ROCE).
Comparable valuations within the field are attractive. As a result, investors have a portfolio of quality companies, which allows them to create wealth in the long run with low volatility.
The UTI Mastershare Unit Scheme is categorized as Large Cap Fund, which includes ICICI Bank Ltd., Infosys Ltd., HDFC Bank Ltd., Bharti Airtel Ltd., Reliance Industries Ltd., Tata Consultancy Services Ltd., Ltd. Ltd. and HDFC Ltd., Bank Ltd., Ltd. Has investments in top established companies like Bank of India Limited. The top 10 stocks account for about 48 percent of the portfolio.
As of May 31, 2022, the scheme includes investments in healthcare, automobile and auto components, consumer services, telecommunications and capital goods, oil, gas and consumable fuels, FMCG, power, metals and mining and financial services.
The fund has about 7.23 lakh active investors till May 31, 2022. 9,566 crore. The objective of the Fund is to provide safe capital augmentation and / or income distribution in the long run following the disciplined approach of investment as stated above and to maintain the flow of annual dividend every year since its inception. The UTI Mastershare Unit Scheme offers investors a total of Rs. Has paid a dividend of over Rs 4,200 crore.
The scheme has less change in the portfolio. The UTI Mastershare Unit Scheme has given a return of 15.58 per cent (CAGR) since its inception till May 31, 2022, while the S&P BSE 100 TRI has given a return of 14.20 per cent.
If we calculate in this way, initially Rs. The capital of any investor who invests Rs. 17.44 crore, the capital of the investor who invested in S&P BSE 100 TRI increased to Rs. 11.36 crore, so in the last 35 years, the fund has returned 174 times.
