Unearthing gems: Top 5 UTI mutual funds shining bright in 2023

In 2023, UTI mutual fund schemes have delivered consistent returns, showcasing compelling potential for the future.

UTI Mutual Fund, a titan in the Indian financial landscape, boasts a diverse portfolio of schemes catering to various risk appetites and investment goals. But with so many options, navigating the ocean of choices can be daunting. So, here's our curated list of the top 5 UTI mutual funds that have dazzled in 2023, offering consistent returns and compelling potential for the future. 

UTI Infrastructure Fund 

This UTI Infrastructure Fund is perfect for those who are confident in India's infrastructure boom. It invests heavily (95 per cent) in companies driving this growth, focusing on sectors like roads, ports, and power. While this targeted approach offers potentially high returns (32.99 per cent in the past year, 29.02 per cent in 3 years, and 18.53 per cent in 5 years), it also carries higher risk. With a sizable asset base of Rs 1,773.20 crore and minimal cash (4.8 per cent) or debt (0.1 per cent), this fund is a committed player in the infrastructure space. If you're willing to handle the volatility, this focused fund could be a powerful engine for long-term capital appreciation in your portfolio. 

UTI Large and Midcap Fund  

Seeking a strategic blend of stable Large-Cap and dynamic Mid-Cap potential? Look no further than UTI Large & Mid Cap Fund. This sizeable fund, with assets under management of Rs 2,184 crore, focuses on capital appreciation across diverse market segments. Its carefully curated portfolio prioritises equity investments, allocating roughly 94.4 per cent to stocks, with minimal holdings in cash (5.3 per cent) and debt (0.2 per cent). The fund's impressive track record speaks volumes. It has delivered consistent returns over various timeframes, boasting a remarkable 31.20 per cent return in just 1 year, 27.24 per cent in 3 years, and a solid 17.95 per cent over 5 years. This consistent performance demonstrates the fund's ability to navigate market fluctuations and capitalise on growth opportunities across company sizes. 

UTI Transportation and Logistics Fund 

This UTI Transportation and Logistics Fund is a niche option riding the rising tide of India's logistics boom. It invests heavily (93.3 per cent) in companies across the sector, including trucking, warehousing, and shipping lines. This targeted exposure offers the potential for significant returns, with past performance showing 34.34 per cent in 1 year, 27.75 per cent in 3 years, and 15.40 per cent in 5 years. However, be aware that such focused investments also carry higher risk. The fund currently boasts a sizeable corpus of Rs 2,596 crore and keeps a small portion (6.6 per cent) in cash and an even smaller amount (0.1 per cent) in debt instruments. 

UTI Midcap Fund 

Seeking high growth potential from smaller companies? UTI Midcap Fund focuses on promising mid-cap businesses poised for significant expansion. However, this focus on market volatility also means higher risk. Consider this fund if you have a long-term investment horizon and a stomach for market fluctuations. Currently, the fund boasts a substantial size of Rs 9,407.92 crore, indicating investor confidence. Its asset allocation prioritises stocks, with nearly 96.4 per cent holdings. Cash and debt make up minimal portions, demonstrating the fund's commitment to capital appreciation through equity exposure. Past performance paints a promising picture. The fund delivered impressive returns of 27.52 per cent in the 1 year, 25.17 per cent in the past 3 years, and 20.55 per cent over the past 5 years. These figures stand as a testament to the fund's ability to navigate volatile markets and generate substantial returns for long-term investors. 

UTI dividend Yield Fund 

If you're prioritising regular income alongside a moderate capital appreciation and a lower risk profile, UTI Dividend Yield Fund might be worth considering. This fund invests in dividend-paying companies across various sectors, aiming for consistent payouts while your investment also grows at a steady pace. The fund boasts a substantial size of Rs 3,281.46 crore, and it heavily focuses on equity with around 96.9 per cent of its holdings in stocks. This signifies its commitment to dividend generation from profitable companies. With minimal cash (2.9 per cent) and debt (0.2 per cent) holdings, the fund prioritises generating returns primarily through dividends. 

Looking at historical performance, the fund has delivered impressive returns over different timeframes, with 31.37 per cent in 1 year, 22.80 per cent in 3 years, and 17.26 per cent in 5 years. This indicates its ability to provide both consistent income and capital appreciation, making it a potentially attractive option for income-seeking investors with a moderate risk tolerance. 

Please remember that past performance is not indicative of future results, and thorough research is crucial before making any investment decisions. Consider your risk appetite, and investment goals, and consult with a financial advisor if needed. 

Disclaimer: The article is for informational purposes only and not investment advice.