Towering performance from UTI Services

It has indeed been a towering performance by UTI Services Sector Fund. The only fund with a triple digit return for the one-year ended November 30, UTI Services Sector stands tall amidst the ravaged net asset values of equity funds. With a one-year return of 131.48 per cent, the fund's closest yet distant competitor is Kothari Pioneer Taxshield, which has gained only 47 per cent in the same period. So, what has been the investment strategy of a fund, which invests in stocks drawn from industries such as banking and finance, travel, transportation, utility services providers and entertainment. Like all other equity funds, UTI Services Sector primarily invests in fundamentally sound companies. "We have been looking at those companies, which have quality management and high growth rates,'' says V Suresh, fund manager, UTI Services Sector. Yet, what sets the fund apart from its peers is the aggressive management by the fund manager. "Given the small size of the fund (around Rs 60 crore), active portfolio churning and without any impact on the prices has been easy for us. Trading has definitely helped us log good returns,'' adds Suresh. That the fund is "actively" managed is a euphemism, given the portfolio turnover of 1