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UTI Market Outlook Report
January 2019
Market Outlook Flow
Macro Economic View
Fixed Income Outlook
Equity Outlook
IMF projects 2018 global growth at 3.7% (20 bps lower than
Apr projection)
United States growth projection retained at 2.9% while 2019
growth reduced by 20bps
India’s GDP projection lowered by 10bps to 7.4% for 2019
IMF 2019 world GDP growth at 3.7% (20 bps lower)
− Among EMEs, growth prospects factor in trade wars, tighterfinancial conditions, geopolitical tensions, higher oil import
bills
− Slower expansion in working-age populations andprojected lackluster productivity gains to imply lowermedium-term growth rates in advanced economies
Global Macros Growth: Cyclical upswing, structural change
Source: The International Monetary Fund, based on latest IMFdata available till December 31, 2018
IMF Growth Projections
3.7 3.7 3.7
2.4 2.42.1
6.5 6.5 6.3
0
1
2
3
4
5
6
7
2017 2018 2019
World output Advanced economies Emerging & developing Asia
3
Key Policy Rates:Rates inching up major economies
US FOMC hiked the funds target rate by 25 bps to 2.25% in Sep’18 policy. The Fed dot plot indicated 2 rate
hikes in 2019 from an earlier expectation of 3.
Bank of Japan held its monetary policy steady as inflation is still far from targeted 2%. Deposit rate was
retained at -0.1%. BoJ announced more flexibility in its bond purchases, allowing a wider band for yield
curve control policy
ECB kept the main refinancing operations rate and marginal lending rates unchanged at 0% & 0.25%
respectively. ECB confirmed the halt of Monthly purchase under asset purchase program Dec’18 onwards
Bank of England held the policy rate at 0.75%. BoE held government bond purchases at £435bn and
corporate bond purchases at up to £10bn
Source: Bloomberg based on data available till December 31, 2018
Ra
tes
(%)
4
-0.5
0
0.5
1
1.5
2
2.5
3
US UK ECB Canada Japan
Domestic Macro Growth:
Growth picks up, IIP remains range bound
Growth: Demon & GST disruptions behind us
Q2FY19 reflects moderation in growth from 8%+ levels seen in Q1FY19; Q2FY19 GVA at 6.9% and GDP at 7.1%
Q2FY19 Industries growth marked moderation on an adverse base and higher input costs
Nominal GDP (12%) indicated positive deflator, flattish investments, higher Government consumption, moderation
in private consumption; albeit a much wider net exports deficit
Government efforts towards capital spending, boosting agri incomes, faster project clearances, ease of doing
business, various other institutional and operational reforms remain imperative
Oct IIP at 8.1% came in higher than 4.5% (Sep) gaining from festive demand (ahead of Diwali in Nov) and a
favorable base effect.
IIP growth (% yoy)
Source: CSO based on data available till December 31, 2018
Real GDP (activity wise)
Source: CSO based on data available till December 31, 2018
%%
5
-4
0
4
8
12
16
Jun-
12
Sep
-12
Dec
-12
Mar
-13
Jun-
13
Sep
-13
Dec
-13
Mar
-14
Jun-
14
Sep
-14
Dec
-14
Mar
-15
Jun-
15
Sep
-15
Dec
-15
Mar
-16
Jun-
16
Sep
-16
Dec
-16
Mar
-17
Jun-
17
Sep
-17
Dec
-17
Mar
-18
Jun-
18
Sep
-18
GDP Agriculture Industry Services
Inflation:Core inflation stays above 5%
Inflation: Headline to remain elevated
Nov CPI Inflation @ 2.3% came in much lower than 3.4% in Oct’18; Core CPI moderated to 5.7% v/s 6.2% in Oct’18
WPI for Nov’18 at 4.6% vs 5.3% in Oct’18
CPI trajectory likely to trend marginally higher in Q4FY19
Source: MOSPI, UTI MF, Office of Economic Advisor based on data available till Dec 31, 2018
CPI and Core CPI inflation (% YoY)
-4
-2
0
2
4
6
8
10
May
-16
Jul-1
6
Sep
-16
Nov
-16
Jan-
17
Mar
-17
May
-17
Jul-1
7
Sep
-17
Nov
-17
Jan-
18
Mar
-18
May
-18
Jul-1
8
Sep
-18
Nov
-18
(%) Y
oY
Fuel Food
Source: MOSPI, UTI MF, Office of Economic Advisor based on data available till Dec 31, 2018
Inflation rates within RBI’s target trajectory
6
0
1
2
3
4
5
6
7
May
-16
Jul-1
6
Sep
-16
Nov
-16
Jan-
17
Mar
-17
May
-17
Jul-1
7
Sep
-17
Nov
-17
Jan-
18
Mar
-18
May
-18
Jul-1
8
Sep
-18
Nov
-18
(%) Y
oY
CPI Core CPI
Fiscal Deficit:
India’s fiscal deficit for Apr-Nov 2018 came in at Rs. 7.16
lakh crore, or 114.8% of the budgeted target for FY19
against 102.9% a year earlier.
Some comfort
― Capital spending not compromised so far
Some concerns
― Lower run rate of direct tax collections and non tax
revenue
― Dismal disinvestment
― Higher MSP, insurance scheme costs
Twin Deficits:Fiscal & Current Account
YTDFY19
(Rs Bn)
% of
FY19BE
YTDFY18
(Rs Bn)
% of
FY18
Revenue Receipt 8,703 50.4 8,049 53.5
Tax (net) 7,317 49.4 6,994 55.1
Non tax 1,386 56.6 1,055 44.7
Capital Receipt 263 28.5 618 52.6
Recovery of loans 105 85.8 95 54.2
Others 158 19.8 524 52.4
Total Receipt 8,966 49.3 8,667 53.4
Total Expenditure 16,132 66.1 14,788 66.7
T-Revenue 14,218 66.4 12,947 66.6
T-Capital 1,914 63.8 1,841 67.5
Fiscal Surplus/(Deficit) (7,166) 114.8 (6,121) 102.9
Source: CGA based on data available till December 31, 2018
7
Current Account Deficit: External balances to
deteriorate in FY19
Twin Deficits:Fiscal & Current Account
Current Account
Q2FY19 CAD at 2.9% of GDP vs 2.4% in Q1FY19.
FX reserves dip by USD 1.9 bn in Q2FY19
FY19 CAD to widen v/s FY18; overall externalbalances have made INR weaker in FY19
India’s trade deficit narrowed to $16.7 billion inNov’18 compared to $17.13 billion in Oct’18 on backof sharp fall in crude oil prices
USD
Bn
Trade Balance (USD Bn)
USD
Bn
Source: Bloomberg based on data available till December 31, 2018
Source: GoI based on data available till December 31, 2018
8
(60)
(40)
(20)
-
20
40
Q2F
Y10
Q4F
Y10
Q2F
Y11
Q4F
Y11
Q2F
Y12
Q4F
Y12
Q2F
Y13
Q4F
Y13
Q2F
Y14
Q4F
Y14
Q2F
Y15
Q4F
Y15
Q2F
Y16
Q4F
Y16
Q2F
Y17
Q4F
Y17
Q2F
Y18
Q4F
Y18
Q2F
Y19
Invisibles Trade balance Current account
USD bn
Domestic Macro Drivers:Favorable trajectory
Key Factors Where is it placed currently? Outlook
GVA Growth Cyclical growth recovery
Inflation Headed Northwards
Fiscal Deficit to GDP
Tight Walk
Rates/RBI Policy Stable & focused
Current Account to GDP Nearing threshold levels
Indian Economy has achieved significant progress in its macro,which will support the growth for many years to come
GVA Growth (%)
6.6
3.9 10.3
Low High
Inflation (%)
2.3
1.9 11.4
Low High
Fiscal Deficit to GDP (%)
3.5
2.5 6.5
Low High
Current Account to GDP (%)
-2.4
-4.8 2.4Low High
Repo Rate (%)
6.5
4.5 9.0
Low High
Macro-economic variables data from 2002-2018. Source: MOSPI, MOSL, Bloomberg Current data as of: GVA, CA to GDP, Fiscal deficit to GDP. Inflation & Repo Rate as of Dec’18
%
9
2018-19: Macro – nothing to cheer
Growth recovery shaping up post demonetization and GST implementation
― FY19 growth numbers on an uptrend (GDP pegged at 7.3%)
Inflation: Rising price pressures ahead
― FY19 to mark average inflation of less than 4%
Fiscal consolidation difficult ahead of an election year
― Center’s slippage evident: revised FD/GDP target of 3.5% for FY18 and 3.3% for FY19
― State finances comforted by share of GST from Centre
Current account deficit expected around 2.5% of GDP
― Higher import bill and capital flow vulnerability challenge comfort on CAD/GDP
Reforms implementation to augur well for medium term macro :
― Bankruptcy code, GST passed; supply-side reforms imperative
Long term drivers intact:
― Targeting lower inflation, increasing disposable incomes and rise of the middle class generate demandpotential
― India’s relative attractiveness in the EME basket
― Diversified trade destinations to Asia & the Middle East leading to less trade dependence on developedworld
10
Fixed Income Outlook
Indian 10 Year G-Sec:
Yields trending up again
Source: Bloomberg & RBI
The 10 year benchmark G-Sec, the 7.17% 2028 GS yields closed at 7.37% on last day of Dec’18
Softening of yields was on back of:
― Softening crude oil prices
― RBI’s mention of space opening up ahead for appropriate policy action in case upside risks toinflation do not materialize led to market expectations of policy easing going ahead
― Appointment of new RBI governor who is perceived to have a dovish interest rate outlook
― RBI announcement of Rs. 10,000 crs
― Softening inflation
12
6.0
6.5
7.0
7.5
8.0
8.5
5.8
6.3
6.8
7.3
7.8
8.3
Jan-15 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 Apr-17 Aug-17 Dec-17 Apr-18 Aug-18 Nov-18
10 Y
r Gse
c (%
)
Re
po
(%
)
Repo Rate (LHS) 10 year G-sec Yield (RHS)
Yield Curve Yields have softened across the yield curve
Source: CCIL
• The above graph shows the movement of yields across different maturities
• Short term as well as long term yields have moved down in month of Dec’18 from Nov’18
13
5.80
6.30
6.80
7.30
7.80
8.30
8.80
0 1 2 3 4 5 6 7 8 9 10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Ze
ro C
ou
po
n R
ate
(%
)
Maturity (Yrs.)
Movement of Zero Coupon Yields
30/Nov/18 31/Dec/18
14
Domestic Debt Market IndicatorsSoftening seen in the month gone by
Source: Bloomberg, Data as on last day of the above mentioned months
7.5
8.6
9.1
7.2
8.4
9.0
6.9
8.3
8.9
6.00
6.50
7.00
7.50
8.00
8.50
9.00
9.50
Tbill AAA AA
1 Year Rates (%)
Oct-18 Nov-18 Dec-18
7.8
8.9
9.5
7.5
8.7
9.3
7.2
8.4
9.0
6.00
6.50
7.00
7.50
8.00
8.50
9.00
9.50
10.00
G-sec AAA AA
5 Year Rates (%)
Oct-18 Nov-18 Dec-18
7.7
8.8
9.3
7.3
8.6
9.2
7.0
8.5
9.1
7.00
7.50
8.00
8.50
9.00
9.50
G-sec AAA AA
3 Year Rates (%)
Oct-18 Nov-18 Dec-18
7.9
8.9
9.4
7.6
8.7
9.2
7.4
8.5
9.2
6.00
6.50
7.00
7.50
8.00
8.50
9.00
9.50
10.00
G-sec AAA AA
10 Year Rates (%)
Oct-18 Nov-18 Dec-18
YTD Data till Dec 2018Data Source: ICRA MFI Explorer
BnUSD
Calendar Year
15
Fund Flows:FPI/ FII Inflow and Debt MF Inflow trend
2.4 1.4
10.4 7.9 6.4
-8.2
25.0
6.7
-6.2
23.3
-6.8
10.2
42.4 43.6
55.0
82.876.5
98.5
65.5
46.6
59.5
46.9
-20
0
20
40
60
80
100
120
FII/FPI flows Debt MF flows
RBI’s 5th Bi-monthly Monetary Policy 2018-19
Key Takeaways
RBI revises inflation downwards, cuts SLR by 25 bps from Jan’19
Kept the policy Repo Rate under the Liquidity Adjustment Facility (LAF)
unchanged at 6.50%
Consequently, the reverse repo rate under the LAF stands at 6.25%, and
the marginal standing facility(MSF) rate and the Bank Rate at 6.75%
Key Rates (%) Dec 5, 2018 Dec 4, 2018
Repo No change 6.50
Reverse Repo No change 6.25
Cash Reserve Ratio (CRR) No change 4.00
Statutory Liquidity Ratio (SLR) 19.25 (from Jan'19) 19.50
Marginal Standing Facility (MSF) No change 6.75
Bank Rate No change 6.75
10-Year G-Sec 7.44 7.57
Source: Bloomberg
CPI INFLATION
Projection lowered to 2.7-3.2% in H2FY19 (from 3.9-4.5% in
Oct policy) and 3.8-4.2% in H1FY20 from 4.8% projected
earlier
Inflation projections factor in:
• Deflation seen in food inflation• Non-food inflation remaining elevated
• Sharp decline in global crude prices
• Recent appreciation seen in EME currencies
Uncertainties &Upside Risks:
• Reversal from subdued food inflation• Effective MSP implementation
• Crude price
• Global financial volatility impacting INR
• Elevated 1 year ahead household inflation expectations
• Fiscal slippage
• State HRA implementation
GROWTH
FY19 GDP projection retained at 7.4%; 7.5% for H1FY20
Support:
• Lower crude prices aiding margins
• Increased capacity utilization levels
• improved credit-off take
• Probable improvements in FDI flows
Negatives:
• Lower agri sowing impacting rural demand
• Export vulnerability amidst trade wars
16
In such a scenario, funds having a combination of higher income accrual and short to medium term
duration would provide a good investment opportunity for the investors
Fixed Income:Current Market Outlook
Bond yields fell following a slump in global crude oil prices, which eased concerns of increase in domesticinflationary pressures
Global crude oil prices plunged 12% over the month amid growing probability of fall in energy demand owing toglobal economic slowdown, consistent rise in U.S. crude stockpiles and an increase in output from Saudi Arabia.Additionally, political unrest in U.S. and the U.S.-China trade jitters led to a decline in global crude oil prices.
Market sentiment was further boosted after the Reserve Bank of India (RBI) increased the quantum of theplanned open market purchase of government bonds for Dec 2018 by Rs. 10,000 crore.
Gains were extended as bond yields continued with their downward trend after retail inflation fell to a 17-monthlow in Nov 2018
17
Market participants moving forward are likely to remain watchful of the outcome of general elections. Credit offtake and systematic liquidity will be in sharp focus as these factors may influence the stance that MPC adopts in its monetary policy. On the global front, concerns of a global trade war still loom large even though the situation is has improved recently
Equity Outlook
Data Source : Bloomberg
YoY
%gr
ow
th
Timeline
There is significant headroom for credit growth
Bank Credit Growth:Slight improving trend
19
0
5
10
15
20
25
30
35
40
Dec-98 Dec-00 Dec-02 Dec-04 Dec-06 Dec-08 Dec-10 Dec-12 Dec-14 Dec-16 Dec-18
Commercial Credit Growth
15.1%
Data Source : MOSL LPA: Long Period Average
S&
P B
SE S
en
sex E
BIT
DA
ma
rgin
s in
%
EBITDA Margin expansion driven by lower raw material costs has run
its course, still scope for operating leverage
Timeline
Corporate Profits:Margins are quite healthy
20
28.3
28.0
30.3
28.5
26.1
26.226.2
24.4
25.2
24.0
23.6
22.7
24.6
23.6
24.124.3
24.6
24.8 24.7
21.6
22.5
22.5
20.7
21.6
20.920.4
20.9
21.7
20.821.0
22.0
22.9
22.321.8
22.2
23.6
24.5
22.8
24.4
27.0
27.7
26.0
26.6
26.6
25.8
27.8
27.5
27.5
26.527.2
27.5
27.5
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Sensex Margin LPA: 24.5%
Data Source: MOSL; The vertical axis is on a logarithmic scale S&P BSE Sensex, EPS: Earnings per share. CAGR: Compound annual growth rate
S&
P B
SE S
en
sex E
PS
Timeline
Earnings Trend:Likely Acceleration
21
-2% CAGR
91
81
129 181 250
266
291
278
280
216
236
272 361
446
540 720
833
820
834
1024
1109
1179
1334
1347
1330
1347
1378
1589
2100
Ma
r-92
Ma
r-93
Ma
r-94
Ma
r-95
Ma
r-96
Ma
r-97
Ma
r-98
Ma
r-99
Ma
r-00
Ma
r-01
Ma
r-02
Ma
r-03
Ma
r-04
Ma
r-05
Ma
r-06
Ma
r-07
Ma
r-08
Ma
r-09
Ma
r-10
Ma
r-11
Ma
r-12
Ma
r-13
Ma
r-14
Ma
r-15
Ma
r-16
Ma
r-17
Ma
r-18
Ma
r-19
E
Ma
r-20
E
S&P BSE Sensex EPS Trend
15% 32%2%
Earnings growth recovery is essential for valuations to sustain
Data Source: Bloomberg P/E” Price to Earnings Ratio, Avg: Average, std dev: Standard Deviation, Data as of 15th Jan, 2019
S&
P B
SE S
en
sex t
raili
ng
PE
Valuations:In the upper reaches
Timeline
P/E - FAIRLY VALUED
P/E - EXPENSIVE
P/E - CHEAP
2222
8
10
12
14
16
18
20
22
24
26
28
Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
P/E Average P/E +1 std dev -1 std dev
22.3
18.9
15.6
23.5
Nifty 50 premium over Nifty Midcap Index (Forward P/E )
2323 Data Source: Bloomberg, Data as of 31st Dec, 2018
2%3%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
Nifty 50 premium over Nifty Midcap Index (Forward P/E )
Equity Mutual Fund Inflows include Arbitrage Funds, Equity Mutual Fund Inflows in CY 2018Data Source: AMFI. Mutual Funds (Equity & ELSS Schemes)FII (Foreign Institutional Investors)
Fund Flows:FPI/ FII Inflow and Equity MF Inflow trend
BnUSD
Calendar Year
24
18.5
-12.9
17.6
29.3
-0.5
24.5
19.8
16.2
3.3 2.9
8.0
-4.6
6.47.8
0.3
-3.1
1.6
-2.9-1.8
8.0
13.6
7.8
22.8
19.9
-15
-10
-5
0
5
10
15
20
25
30
FPI/ FII Inflow Equity MF Inflow
Performance is in local currency (Annualised)
Sorted on 1 Year Returns
2525Data Source : Bloomberg
CAGR: Compound annual growth rate
Performance (CARG %) as on 31/12/2018
Global Markets
25
Indices Country 1 Year 3 Years 5 Years
BRAZIL IBOVESPA INDEX BRAZIL 15% 27% 11%
NIFTY 50 INDIA 3% 11% 11%
JAKARTA COMPOSITE INDEX INDONESIA -3% 10% 8%
DOW JONES INDUS. AVG US -6% 10% 7%
S&P/ASX 200 INDEX AUSTRALIA -7% 2% 1%
RUSSIAN RTS INDEX RUSSIA -7% 12% -6%
SWISS MARKET INDEX SWITZERLAND -10% -1% 1%
CAC 40 INDEX FRANCE -11% 1% 2%
FTSE/JSE AFRICA ALL SHR SOUTHAFRICA -11% 1% 3%
NIKKEI 225 JAPAN -12% 2% 4%
FTSE 100 INDEX UK -12% 3% 0%
HANG SENG INDEX HONGKONG -14% 6% 2%
DAX INDEX GERMANY -18% -1% 2%
SHANGHAI SE COMPOSITE CHINA -25% -11% 3%
Data Source : BloombergCAGR: Compound annual growth rate
Sorted on 1 Year ReturnsPerformance (CARG %) as on 31/12/2018
Top Sectors in last one year performance were IT, FMCG and Bank;
Realty, Auto & Metal posted the most negative returns in the CY.
Domestic Sector Performance
26
Indices 1 Year 3 Years 5 Years
S&P BSE IT 25% 8% 9%
S&P BSE FMCG 11% 15% 13%
Nifty Bank 6% 17% 19%
S&P BSE Energy 0% 18% 13%
S&P BSE Cap Goods -2% 10% 13%
S&P BSE Healthcare -6% -6% 7%
S&P BSE Oil & Gas -16% 13% 9%
Nifty PSU Bank -17% 3% 4%
S&P BSE Metal -21% 17% 4%
S&P BSE Auto -22% 4% 11%
S&P BSE Realty -31% 10% 5%
Equity Markets:Current Market Outlook
27
Among the major economies US economic data is healthy; China & Europe are slowing. Rising tradetensions are a concern.
The fiscal trajectory is worrying and a new concern is that the fiscal outlays to tackle agricultural distresscould further pressure the fiscal account
Consensus Nifty earnings growth expectations for FY20 are well above 20%. Caveat is that the headlinenumber is driven by a handful of heavyweights.
The good news is that Inflation is within RBIs comfort zone and there is possibility of a rate cut later this year.
The sharp drop in oil prices in oil will provide relief to the trade deficit in India.
The consensus expectation for FY19 Nifty earnings growth has witnessed significant cuts and now stands inthe mid teens.
We see more bottom up opportunities in the market.
Valuations for the Nifty have corrected from the expensive zone but remain well above historical averages.
Midcap valuation premium to large cap has eroded.
Product Positioning
Equ
ity
& In
dex
Market Cap BasedLi
qu
id &
De
bt
Hyb
rid
&So
luti
on
s
Thematic Fund
Sector
Index & ETFs
Others
Large Cap
UTI Mastershare Unit Scheme
Multi Cap
UTI Equity Fund
Large & Mid Cap
UTI Core Equity Fund
Mid Cap
UTI Mid Cap Fund
Infrastructure
UTI Infrastructure Fund
MNC
UTI MNC Fund
Lifestyle
UTI India Lifestyle Fund
Banking & Financial
UTI B&FS Fund
Healthcare
UTI Healthcare Fund
Transportation & Logistics
UTI T&L Fund
Index – Nifty 50
UTI Nifty Index (Fund & ETF)
Index – Nifty Next 50
UTI Nifty Next 50 (Fund & ETF)
Index – S&P BSE Sensex
UTI Sensex ETF
Gold ETF
UTI Gold ETF
Value
UTI Value Opportunities Fund
ELSS
UTI LTEF (Tax Saving)
Accrual
Duration
Credit
Hybrid
Solutions
Product Bouquet: An Overview
Liquid
UTI Liquid Cash Plan
Overnight
UTI Overnight Fund
Money Market
UTI Money Market Fund
Ultra Short Term
UTI Ultra Short Term Fund
Floater Fund
UTI Floater Fund
Banking & PSU Debt
UTI Banking & PSU Debt Fund
Short Term
UTI Short Term Income Fund
Corporate Bond
UTI Corporate Bond Fund
Dynamic Bond
UTI Dynamic Bond Fund
Medium to Long Term
UTI Bond Fund
Gilt
UTI Gilt Fund
Low Duration
UTI Treasury Advantage Fund
Credit Risk
UTI Credit Risk Fund
Medium Term
UTI Medium Term Fund
Conservative Hybrid
UTI Regular Savings Fund
Aggressive Hybrid
UTI Hybrid Equity Fund
Multi Asset Fund
UTI Multi Asset Fund
Arbitrage
UTI Arbitrage Fund
Equity Savings
UTI Equity Savings Fund
Children’s Fund
UTI CCF (Savings & Investment)
Retirement
UTI Retirement Benefit PF UTI ULIP
Equity – Products
UTI MastershareUnit Scheme
UTI Core Equity Fund
UTI Equity Fund
UTI Value Opportunities Fund
UTI Mid Cap Fund
Market Capitalisation
Large Cap Mid Cap Small Cap Scheme Characteristics
Min. 80% in Large Cap Stocks
Min. 35% in Large & Mid Cap each
Investing across the Market Caps
Following Value investment Strategy
Min. 65% in Mid Cap Stocks
30
Fixed Income – Product Positioning : Duration vis-a-vis Credit Quality
1 day 3 to 4 yrs0 to 3 mths
3 to 6
mths6 to 12 mths
1 to 3 years
4 to 7 yrs 7+ yrs
CREDIT ORIENTEDAAA/AA+: <=35%
AA/AA-/A : 65% >=
MODERATE QUALITYAAA/AA+: 50% to 70%
AA/ AA-/ A : 30% to 50%
HIGH QUALITYAAA/ AA+ : 80% >= AA/ AA-/ A: <= 20%
HIGHEST QUALITYAAA/AA+ : 95% >=,
AA/ AA-/ A : <= 5%
DURATION BUCKET
CREDITQUALITY
UTI
OVERNIGHT
FUND
UTI LIQUID
CASH PLAN
UTI ULTRA
SHORT
TERM FUND
UTI
FLOATER
FUND
UTI TREASURY
ADVTG FUND
UTI MONEY
MKT FUND
UTI B&PSUD
FUND
UTI SHORT TERM
INCOME FUNDUTI BOND
FUND
UTI CREDIT
RISK FUND
UTI GILT FUND
UTI DYNAMIC
BOND FUND
UTI MEDIUM
TERM FUND
31
UTI CORPORATE
BOND FUND
Hybrid - bucketing by Scheme Characteristics
UTI CCF – Savings Plan
UTI RBPF
UTI Regular Savings Fund
Debt : 60% to 100%
Equity : 0% to 40%
Debt : 75% to 90%
Equity : 10% to 25%
Debt : 60% to 100%
Equity : 0% to 40%
UTI Hybrid Equity Fund Equity : 65% to 80%
Debt : 20% to 35%
UTI Arbitrage Fund Equity : 65% to 100%
Derivatives : 65% to 100%
UTI Multi-Asset Fund*Equity : 65% to 100%
Debt : 10%to 25
Gold : 10% to 25%
UTI CCF – Investment PlanEquity : 70% to 100%
Debt : 0% to 30%
Arbitrage
Multi Asset
Hybrid Aggressive
Solution Children
Solution Retirement
Conservat
Hybrid Conservative
Solution Children
UTI ULIP@ Dynamic Allocation Debt : 60% to 100%
Equity : 0% to 40%
3
4
1
6
7
8
9
*of which Cash future arbitrage opportunities 20% to 75%, Net long equity position 20% to 50%@ subject to SEBI approval
UTI Equity Savings Fund Equity : 65% to 90%*
Debt : 10% to 35% Equity Savings5
32
2
Name of the Scheme This product is suitable for investors who are seeking* Riskometer
UTI Mastershare Unit Scheme
(Large Cap Fund- An open ended equity scheme
predominantly investing in large cap stocks)
• Long term capital appreciation
• Investment predominantly in equity instruments of large cap
companies
UTI Core Equity Fund
(Large & Mid Cap Fund- An open ended equity scheme
investing in both large cap and mid cap stocks)
• Long term capital appreciation
• Investment predominantly in equity instruments of both large cap
and mid cap companies
UTI Mid Cap Fund
(Mid Cap Fund- An open ended equity scheme
predominantly investing in mid cap stocks)
• Long term capital appreciation
• Investment predominantly in mid cap companies
UTI Value Opportunities Fund
(An open ended equity scheme following a value
investment strategy)
• Long term capital appreciation
• Investment in equity instruments following a value investment
strategy across the market capitalization spectrum
UTI Equity Fund
(Multi Cap Fund- An open ended equity scheme investing
across large cap, mid cap, small cap stocks)
• Long term capital appreciation
• Investment in equity instruments of companies with good growth
prospects across the market capitalization spectrum
UTI Dividend Yield Fund
(An open ended equity scheme predominantly investing in
dividend yielding stocks)
• Long term capital appreciation
• Investment predominantly in dividend yielding equity and equity
related securities
UTI Infrastructure Fund
(An open ended equity scheme following the
Infrastructure theme)
• Long term capital appreciation
• Investment predominantly in equity and equity related securities of
companies forming part of the infrastructure sector
UTI MNC Fund
(An open ended equity following the theme of investing
predominantly in equity and equity related securities of
Multi-National Companies)
• Long term capital appreciation
• Investment predominantly in equity and equity related securities of
Multi-National companies
UTI India Lifestyle Fund
(An open ended equity scheme following the theme of
changing consumer aspirations, changing lifestyle and
growth of consumption)
• Long term capital growth
• Investment in equity instruments of companies that are expected to
benefit from of the changing consumer aspirations, changing
lifestyle and growth of consumption
Product Label
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
33
Name of the Scheme This product is suitable for investors who are seeking* Riskometer
UTI Banking and Financial Services Fund
(An open ended equity scheme investing in Banking and
Financial Services Sector)
• Long term capital appreciation
• Investment predominantly in equity and equity related securities of
companies engaged in banking and financial services activities.
UTI Healthcare Fund
(An open ended equity scheme investing in the Healthcare
Services Sector)
• Long term capital appreciation
• Investment predominantly in equity and equity related securities in the
Healthcare Services sector.
UTI Transportation and Logistics Fund
(An open ended equity scheme investing in transportation
and logistics sector)
• Long term capital appreciation
• Investment predominantly in equity and equity related securities of the
companies engaged in the transportation and logistics sector
UTI Long Term Equity Fund (Tax Saving)
(An open ended equity linked saving scheme with a
statutory lock in of 3 years and tax benefit)
• Long term capital growth
• Investment in equity instruments of companies that are believed to
have growth potential
UTI Arbitrage Fund
(An open ended scheme investing in arbitrage
opportunities)
• Capital appreciation over medium to long term
• Takes advantage of arbitrage opportunities in cash and derivative
market without taking any directional/ unhedged position in either
equity or derivative instruments
UTI Nifty Index Fund
(An open ended scheme replicating/ tracking Nifty 50
index)
• Capital growth in tune with the index returns
• Passive investment in equity instruments comprised in Nifty 50 Index
UTI Nifty Next 50 Index Fund
(An open ended scheme replicating/ tracking Nifty 50
index)
• Capital growth in tune with the index returns
• Passive investment in equity instruments comprised in Nifty Next 50
Index
UTI Sensex Exchange Traded Fund
(An open ended scheme replicating/ tracking S&P BSE
Sensex index)
• Long term investment
• Investment in securities covered by S&P BSE Sensex
UTI Nifty Exchange Traded Fund
(An open ended scheme replicating/ tracking Nifty 50
index)
• Long term investment
• Investment in securities covered by Nifty 50 Index
UTI Nifty Next 50 Exchange Traded Fund
(An open ended scheme replicating/ tracking Nifty Next 50
index)
• Long term investment
• Investment in securities covered by Nifty Next 50
UTI Gold Exchange Traded Fund
(An open ended scheme replicating/ tracking Gold)
• Returns that, before expenses of the Scheme, closely track the
performance and yield of Gold
• Investment predominantly in gold and gold related instruments
Product Label
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.34
Name of the Scheme This product is suitable for investors who are seeking* Riskometer
UTI Overnight Fund
(An open ended debt scheme investing in overnight securities)
• Reasonable income over one day with capital preservation
• Investment in overnight securities
UTI Liquid Cash Plan
(An open ended liquid scheme)• Steady and reasonable income over short-term with capital
preservation.
• Investment in money market securities & high quality debt
UTI Ultra Short Term Fund
(An open ended ultra-short term debt scheme investing in instruments such
that the Macaulay duration of the portfolio is between 3 months and 6
months)
• Reasonable income with low volatility over short term
• Investment in debt & money market instruments
UTI Treasury Advantage Fund
(An open ended low duration debt scheme investing in instruments such that
the Macaulay duration of the portfolios is between 6 months and 12 months)
• Reasonable income consistent with high liquidity over short term
• Investment in Debt & Money Market instruments
UTI Money Market Fund
(An open ended debt scheme investing in money market
instruments)
• Reasonable income with high level of liquidity over short-term
• Investment in money market securities
UTI Corporate Bond Fund
(An open ended debt scheme predominantly investing in AA+ and
above rated corporate bonds)
• Optimal returns over the medium to long term
• To invest predominantly in AA+ and above rated corporate debt
UTI Short Term Income Fund
(An Open ended Short Term Debt Scheme investing in instruments such that
the Macaulay duration of portfolio is between 1 year and 3 years)
• Reasonable income with low risk and high level of liquidity over
short-term
• Investment in Debt & Money Market instrument
UTI Medium Term Fund
(An open ended medium term debt scheme investing in instruments such
that the Macaulay duration of the portfolio is between 3 years and 4 years)
• Reasonable income over the medium to long term
• Investment in Debt & Money Market Instruments
UTI Bond Fund
(An open ended medium term debt scheme investing in instruments such
that the Macaulay duration of the portfolio is between 4 years and 7 years)
• Optimal returns with adequate liquidity over medium to long term
• Investment in Debt & money market instruments
UTI Dynamic Bond Fund
(An open ended dynamic debt scheme investing across duration)
• Optimal returns with adequate liquidity over medium to long term
• Investment in Debt & Money Market Instruments
UTI Credit Risk Fund
(An open ended debt scheme predominantly investing in AA and below
rated corporate bonds (excluding AA+ rated corporate bonds))
• Reasonable income and capital appreciation over medium to
long term
• Investment in debt and money market instruments
Product Label
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.35
Name of the Scheme This product is suitable for investors who are seeking* Riskometer
UTI Floater Fund
(An open ended debt scheme predominantly investing
in floating rate instruments)
• To generate reasonable returns
• To invest predominantly in floating rate instruments (including fixed rate
instruments converted to floating rate exposures using swaps/ derivatives)
UTI Banking and PSU Debt Fund
(An open ended debt scheme predominantly investing
in debt instruments of Banks, Public Sector Undertakings,
Public Financial Institutions and Municipal Bonds)
• Reasonable income, with low risk and high level of liquidity over short to
medium term
• Investment predominantly in Debt & Money Market Securities issued by
Bank, Public Sector Undertaking (PSUs), Public Financial Institutions (PFIs)
and Municipal Bonds
UTI Gilt Fund
(An open ended debt scheme investing in government
securities across maturities)
• Credit risk free return over the medium to long term
• Investment in sovereign securities issued by the Central Government
and/or a State Government and/or any security unconditionally
guaranteed by the Central Government and/or a State Govt.
UTI Regular Savings Fund
(An open ended hybrid scheme investing predominantly
in debt instruments)
• Long-term capital appreciation and regular income over medium-term
• Investment in equity instruments (maximum 25%) and fixed income
securities (debt and money market securities)
UTI Hybrid Equity Fund
(An open ended hybrid scheme investing predominantly
in equity & equity related instruments)
• Long term capital appreciation
• Investment in equity instruments (maximum-80%) and fixed income
securities (debt and money market securities)
UTI Equity Savings Fund
(An open ended scheme investing in equity, arbitrage
and debt)
• Long term capital appreciation and income
• Investment in equity & equity related instruments, arbitrage opportunities,
and investments in debt and money market opportunities
UTI Multi Asset Fund
(An open ended scheme investing in equity, debt & Gold
ETFs)
• Long term capital appreciation
• Investment in equity, debt and Gold ETFs with a minimum allocation of 10%
in each asset class.
UTI Children’s Career Fund – Savings Plan
(An open ended fund for investment for children having
a lock-in for at least 5 years or till the child attains age of
majority (whichever is earlier))
• Long term capital appreciation
• Investment in equity instruments (maximum-40%) and debt instruments
UTI Children’s Career Fund – Investment Plan
(An open ended fund for investment for children having
a lock-in for at least 5 years or till the child attains age of
majority (whichever is earlier))
• Long term capital appreciation
• Investment in equity instruments (above 70%) and debt instruments
UTI Retirement Benefit Pension Fund
(An open ended retirement solution oriented scheme
having a lock-in of 5 years or till retirement age
(whichever is earlier)
• Long term capital appreciation
• Investment in equity instruments (maximum - 40%) and debt/money
market instruments
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Product Label
36
AMFI: Association of Mutual Funds of India
Avg. Average
Bn: Billion
BoJ: Bank of Japan
BoP: Balance of Payments
CAD: Current Account Deficit
CAGR: Compounded Annualized Growth Rate
CP: Commercial Papers
CPI(IW): CPI Industrial Workers
CPI: Consumer Price Index
CPOS: Capital Protection Oriented Scheme
CSO: Central Statistical Office
Dual Adv. FTF: Dual Advantage Fixed Term Fund
EBITDA: Earning Before Interest, Tax, Depreciation, Amortization
ECB: External Commercial Borrowing
ELSS: Equity Linked Savings Scheme
EPS: Earnings Per Share
FD: Fiscal Deficit
FMPs: Fixed Maturity Plans
Forex: Foreign exchange
FTIF: Fixed Term Income Fund
FY: Financial Year
GDP: Gross Domestic Product
GVA: Gross Value Added
Glossary
GST: Goods & Services Tax
IIP: Index of Industrial Production
INR: Indian Rupee
MF: Mutual Fund
MOSPI: Ministry of Statistics and Programme Implementation
P/E: Price to Earning Multiple
RBI: Reserve Bank of India
SEBI: Securities & Exchange Board of India
US Fed/Fed: US Federal Reserve
USD: US Dollar
vs: Versus
WPI: Wholesale Price Index
YoY: Year on Year
37
Thank You
REGISTERED OFFICE: UTI Tower, ‘Gn’ Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. Phone: 022 – 66786666. UTI Asset Management
Company Ltd (Investment Manager for UTI Mutual Fund) Email: [email protected] . (CIN-U65991MH2002PLC137867). For more information, please
contact the nearest UTI Financial Centre or your AMFI/NISM certified UTI Mutual Fund Independent Financial Advisor (IFA) for a copy of the
Statement of Additional Information, Scheme Information Document and Key Information Memorandum cum Application Form.
Disclaimers: The information on this document is provided for information purposes only. It does not constitute any offer, recommendation or
solicitation to any person to enter into any transaction or adopt any hedging, trading or investment strategy, nor does it constitute any
prediction of likely future movements in rates or prices or any representation that any such future movements will not exceed those shown in
any illustration. Users of this document should seek advice regarding the appropriateness of investing in any securities, financial instruments or
investment strategies referred to on this document and should understand that statements regarding future prospects may not be realized.
The recipient of this material is solely responsible for any action taken based on this material. Opinions, projections and estimates are subject
to change without notice.
UTI AMC Ltd is not an investment adviser, and is not purporting to provide you with investment, legal or tax advice. UTI AMC Ltd or UTI Mutual
Fund (acting through UTI Trustee Company Pvt. Ltd) accepts no liability and will not be liable for any loss or damage arising directly or
indirectly (including special, incidental or consequential loss or damage) from your use of this document, howsoever arising, and including
any loss, damage or expense arising from, but not limited to, any defect, error, imperfection, fault, mistake or inaccuracy with this document,
its contents or associated services, or due to any unavailability of the document or any part thereof or any contents or associated services.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.