UTI Energy's theme made sense before the markets tanked in 2008, but not anymore…
20-Apr-2011 •Research Desk
What is the future of UTI Energy fund? Should I hold or sell it?
- Dinesh Saksena
This is a thematic fund that invests in, petro sector covering industries such as oil and gas drilling and exploration, refining of crude oil, distribution of oil, gas, petro products, and pipelines. It also invests in industries manufacturing downstream oil products, all types of power generation companies, companies which are into the production of Ethanol business related to storage of energy, delivering energy into different forms, industrial manufacturing companies which are into manufacturing of equipment related to energy development and related areas.
Investing in a thematic fund is risky. This theme had caught fancy of many fund houses in 2007 when the markets were inching towards new highs before it all tanked in January 2008. This idea is yet to ride back into the cycle where you can expect stupendous returns from it. You should cut all emotions when it comes to investing and exit it for opportunities in better performing broad equity diversified funds.