This underrated fund gained 33 per cent in a year; do you hold it?

The average return produced by equity mutual funds during the last one year was 5.4 per cent. Nonetheless, this underrated fund yields returns of 33 per cent. Continue reading to learn more.

Nifty 500 index returned 4.9 per cent in the last one year, while equity mutual funds (including sectoral and thematic funds but excluding exchange-traded funds) returned 5.4 per cent. Furthermore, around 81 per cent of the funds outperformed the Nifty 500 index.

A fund that was underrated produced the greatest returns among these 81 per cent of the funds. In the last one year, UTI Transportation & Logistics Fund returned 32.57 per cent.

Such strong gains were the outcome of a rally in the automobile and ancillary industry. In the last one year, Nifty Auto index returned 31 per cent. In the equity fund category, this is the only fund that is specifically targeted toward the automobile sector.

Top 10 holdings

The top ten holdings of the UTI Transportation & Logistics Fund and Nifty Auto index are identical, as seen in the two tables above. Because the fund is an active fund, the allocation of stocks may differ. Apart from automobile stocks, this fund also invests in logistics businesses.

Nifty Auto index is now trading at its all-time high and consolidating about 13,500 levels. As a result, it is prudent to review and re-balance the investments in UTI Transportation & Logistics Fund.