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The Modern UTI

Despite being headless, UTI Mutual Fund has evolved & brought its equity fund management to order

The oldest mutual fund company in the country is no more what it was. Ten years ago, it did not have a sponsor and now it has five. Each sponsor has different degrees of concerns and ideas for this AMC, which has resulted in the fund house being headless for now close to two years. All that aside, the AMC still has a huge fan following among investors in terms of brand identity, recall and vast distribution reach. That’s not all, there are several firsts to this fund house’s credit too; be it in terms of fund offerings or innovation. In 2008, this AMC used the services of the fabled dabbawalas in Mumbai to distribute fund application forms.

The AMC has a full bouquet of offerings that meets every investor need. Over the past five years, the fund house has evolved and brought order into its equity fund management. For instance, equity funds have well-articulated focus and there are processes in place. Such efforts along with merging of schemes with similar investment mandate has resulted in marked improvement in the fund’s performance despite a slack stock market over the past five years. Such initiatives have again brought back the investor interest in UTI funds, which has resulted in the rise in the assets managed by this AMC. Another pertinent point is the presence of a foreign player as one of the sponsors, the potential of which is yet to be realised by the AMC.