Slap to Inflation by Investment in Large Cap

Inflation is of the biggest enemy of all consumers and investors. But it is most important to know how to protect your savings from shrinking in value over the time. Fortunately, there are several large cap Mutual fund succeed to beat the inflation effect this year. 

Mutual funds provide growth and diversification for your money. Large cap funds provide even more diversification because they invest in both domestic as well as overseas market. Funds investing in dividend paying stocks have a solid track record and with capital gain to outpace inflation. These funds are good buys for investors who would like to receive a stream of income from their portfolio.

 UTI Equity Fund Growth Weekly Chart

UTI Equity Fund Growth is an open ended fund having eyes on large cap stocks and approximately 95% exposure to Equity instruments.

Portfolio Analysis: As per the sectoral holdings Banking/Finance have been most favoured sector for this fund as it is contributing 30% to the entire portfolio followed by Technology and Pharma Sector. At stock level the fund has diversified holdings into 76 stocks with Top 5 stocks contributing around 26% to the entire portfolio. Top Holdings and Sector Allocation for this fund are shown below - 

Top Holdings:

Company	PE	% Assets
HDFC Bank	25.69	6.70
HDFC	21.23	5.08
Infosys	17.28	5.03
Indusind Bank	30.08	5.00
Tata Consultancy Services	19.68	4.58

Sector Allocation:

Sector	%
Banking/Finance	30.16
Pharmaceuticals	13.87
Technology	12.53
Automotive	11.48
Engineering	5.73

Returns:

Performance	Fund
1 Year	14.81
3 Year	24.60
5 Year	16.95

 

Risk Profile: This fund has complete exposure in Equity instruments hence we consider this fund as High Risk hence only Risk taking investors should invest in this fund once the corrective action gets complete.

In a nutshell, entering in this fund in staggered fashion would be advisable at current level. As this is a large cap fund combining this with other small cap, midcap or debt investments would help fetch good returns, balance portfolio and also provide the benefits of diversification.

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