UTI Long Term Equity mutual fund review: An impressive turnaround

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

How the fund has performed

Where the fund invests

Basic facts

• Date of launch: 15 December 1999
• Category: Equity
• Type: ELSS
• AUM (As on 31 October 2021): Rs 3,046 cr
• Benchmark: NIFTY 50 Total Return Index

What it costs
NAV (As on 7 December 2021)

• Growth option: Rs 145.59
• IDCW: Rs 30.42
• Minimum Investment: Rs 500
• Minimum SIP amount: Rs 500
• Expense ratio (As on 31 October 2021) (%): 2.26
• Exit load: 0%

Fund Manager: Vetri Subramaniam
Tenure: 4 years, 2 months

Top 5 sectors in portfolio (%)

Top 5 stocks in portfolio (%)

Recent portfolio changes

• New Entrants: ABB India, Can Fin Homes, Praj Industries, State Bank of India. FSN E-Commerce Ventures.
• Complete Exits: Housing Development Finance Corporation, Indraprastha Gas, Vardhman Textiles.
• Increasing allocation: Supreme Inds, Can Fin Homes, Lupin, Dr. Reddy’s, ICICI Lombard, MCX, ABB India, City Union Bank, ISGEC Heavy Engg, Whirlpool, Godrej Consumer, Jamna Auto.

How risky is it?

Source: Value Research

Should You Buy
This fund retains a large-cap tilt like many peers in this category, but to a lesser degree. It continues to carry sizeable presence in midcaps. The fund attempts to invest in businesses having healthy return ratios, cash flows and sound management. The portfolio is heavily diversified, yet retains some large positions in its top bets. The fund’s track record until a few years ago was very underwhelming, being a laggard among peers. However, the fund has seen a impressive tunaround in the hands of its current fund manager. With a strong emphasis on healthy risk-adjusted return, the fund is emerging a good alternative in its category.