UTI Innovation Fund: A Hidden Gem with Exceptional One-Month Returns!

Mutual fund investors are always on the lookout for schemes that not only promise growth but also deliver consistently, even during volatile times. One such low-priced mutual fund scheme that has caught investors’ attention is the UTI Innovation Fund Direct – Growth. With its impressive one-month performance, this fund is emerging as a hidden gem for those seeking to invest in innovative companies. Let’s dive into what makes this fund stand out.

Performance Highlights: A Stellar One-Month Return

As of August 29, 2024, the UTI Innovation Fund boasts a Net Asset Value (NAV) of ₹13.11. In just the last month, this fund has delivered an impressive absolute return of 7.33%. To put this into perspective, an investment of Rs 1 lakh would have grown to Rs 1.07 lakh, showcasing the fund’s ability to generate robust returns over a short period.

Scheme Overview: Key Details You Need to Know

• Fund Name: UTI Innovation Fund Direct-Growth
• Fund Manager: Ankit Agarwal
• Assets Under Management (AUM): Rs 763.42 Crores
• Launch Date: The scheme’s launch date information is not available.
• Minimum SIP Amount: Rs 500
• Benchmark: Nifty 500 Total Return Index

Since its launch, the UTI Innovation Fund has achieved a commendable return performance of 31.98%. This highlights the fund manager’s adeptness in navigating market conditions and identifying growth opportunities in innovative sectors.

Top Holdings: A Focus on Services and Technology

A glance at the top holdings of the UTI Innovation Fund reveals its strategic inclination towards high-growth companies in the services and technology sectors. As of July 31, 2024, over 50% of the fund’s AUM is allocated to these two sectors. The top three stocks held by the scheme are:

• PB Fintech: 7.15%
• Info Edge: 7.06%
• Zomato: 6.51%

This focus on companies at the forefront of technological and service innovations positions the fund well to capitalize on long-term growth trends.

Portfolio Strategy: Cash Reserves and Benchmark Comparison

The UTI Innovation Fund maintains a prudent cash reserve of 5.10%, allowing the fund manager to tactically deploy capital during market corrections or invest in new opportunities. The benchmark index for the scheme is the Nifty 500 Total Return Index, which provides a comprehensive gauge of the market, ensuring that the fund’s performance is measured against a relevant and broad benchmark.

Investment Opportunity: Is It Right for You?

The UTI Innovation Fund offers investors exposure to high-growth sectors with a relatively low entry point, thanks to its NAV of just Rs 13.11. With a minimum SIP amount of Rs 500, it is accessible to a wide range of investors, from beginners to seasoned market participants. Given its current trajectory and the quality of its holdings, this fund could be an attractive option for those looking to diversify their portfolios with innovative and future-ready companies.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.