UTI Infrastructure has performed exceedingly well in the first three years of its existence. The first of the infrastructure funds to be launched, it has generated phenomenal returns, riding upon the big ticket capital spends happening in the country. In that sense, UTI spotted the opportunity at the right time to come out with such a fund, and many others followed suit.
The fund ranked in the top quartile of the category in 2005, generating 57 per cent returns to better an average peer by a margin of more than 10 per cent. 2006 was even better, when the fund added to its glory by taking the top slot. Its returns of 61.48 per cent ranked it first in the category. This year as well, the fund has so far managed to stay slightly ahead of the category, despite hitting a rough patch in the first quarter, when industries like real estate and cement corrected sharply.
As a result of its superior performance, the fund has attracted a lot of investors' attention, and its asset size has shot up from under Rs 60 crore at the time of its launch in April 2004 to Rs 1,000 crore at present.
Though the fund fairly spread its assets across stocks of different market caps, but of late it has developed a bias for large-caps. At the end of May 2007, stocks of large companies accounted for 57 per cent of its assets. It invests in a reasonably diversified portfolio of around 40 stocks.
Among the sectors, the likes of basic/ engineering, construction and energy obviously dominate the portfolio, but the fund also significant exposure to metals and technology.
In a nutshell, if you want to take a bet on the capital expenditure wave sweeping across the country, then this fund could be a worthy choice.