UTI Value Opportunities Fund Direct Growth Review

Investors who are looking to generate long-term capital appreciation by investing in equity can choose to invest in UTI Value Opportunities Fund Direct-Growth, as this Scheme is perfect for long-term investments.

UTI Value Opportunities Fund Direct-Growth was introduced on July 20th, 2005. This is one of the top-most-ranked mutual funds in India.

Since its Inception, the performance of this Scheme has maintained a high standard. This eventually resulted in a high investment rate by the investors.

UTI Value Opportunities Fund Direct-Growth is benchmarked against the Nifty 500 TRI with AUM (Assets Under Management) 7063.44 Crore.

This Scheme’s CAGR (Compound Annual Growth Rate) is 13.22%.

For instance, Rs.5000 has been invested in this Scheme for 5 years. The returns would be Rs. 9695 (+93.90%).

The UTI Value Opportunities fund offers the following options.

• Growth Option
• Payout of Income Distribution cum capital withdrawal option (Payout of IDCW Option)
• Reinvestment of Income Distribution cum capital withdrawal option (Reinvestment of IDCW Option)

NAV of UTI Value Opportunities Fund Direct-Growth

The current NAV (as of July 5th, 2023) of

• UTI value opportunities fund direct growth is ₹114.1252
• UTI value opportunities fund regular growth is ₹105.8300
• UTI value opportunities fund direct IDCW is ₹37.2203
• UTI value opportunities fund regular IDCW is ₹30.841

UTI Value Opportunities Fund Performance

Years	Annualized Return
Period Invested for	Direct-Growth Plan	Regular Growth Plan
1 Year	23.23%	23.52%
2 Year	10.51%	10.08%
3 Year	24.96%	24.82%
5 Year	14.06%	13.25%
10 Year	14.33%	13.57%

• The above table distinguishes between the Annualized Return of Direct and Regular plans. The UTI Value Opportunity Fund Direct plan returns have yielded a much better return percentage than the regular plan.
• The Fund has performed at a CAGR of 13.19% annually since Inception vs. 12.66% to  NIFTY 500 TRI  (benchmark). The category average has performed at a CAGR of 15.5%.
• The Fund aimed to outperform the benchmark Nifty500 with comparatively low risk.
• UTI value opportunity funds- direct growth’s primary objective is to generate long-term capital appreciation.
• Last 3 years of performance have seen exponential growth at a CAGR of 25.83%.
• The CAGR of year 1 and year 5 are 12.23% and 11.96, respectively.

Fundamental Analysis Ratio

• P/E Ratio- 22.64
• P/B Ratio- 3.22

UTI Value Opportunities Fund Portfolio

The portfolio of the scheme includes

• Equity – 97.12%
• Debt – 0.29%
• Other – 2.59%

Equity Holding (97.12% of the total portfolio)

The Fund holds a total of 58 company stocks, which are further divided into

• Large-cap Investments – 50.69%
• Mid- Cap Investments – 13.55
• Small- cap Investments – 11.08%
• Other – 21.85%

The Top Industrial Sectors Allocation for UTI Opportunities Fund Direct Growth.

Financial	30.2%
Others	25.9%
Technology	11.9%
Automobile	10.6%
Health care	9.5%
Constructions	6.1%
Metals and Mining	5.8%

The top 10 holdings by UTI Value Opportunities Fund – Direct Plan-Growth

Image source: Moneycontrol.com

UTI Value Opportunities Fund – Direct Plan-Growth – Risk Ratio

While investing in a mutual fund, it is always important to take calculative moves to ensure the investments are safer.

A few important parameters need to be considered in the Risk Ratio.

Let’s have a look at the last 3-year risk ratio of this Scheme:

• Standard Deviation:  12.62 Vs. 12.25
• Alpha: 1.37 Vs. 2.02
• Beta: 0.92 Vs. 0.8
• Sharpe Ratio: 1.32 Vs. 1.34

This Scheme’s Risk Ratio is lower than the category average from the above details.

UTI Value Opportunities Fund Expense Ratio

• The Expense Ratio is the money involved in hands-on management. Usually, the expense ratio of mutual funds is between 0.5% and 1.0%.

• The Total Expense Ratio (TER) of UTI Value Opportunities Fund – Direct Plan-Growth is 1.16%.
• The TER of the UTI Value Opportunities Fund Regular is 1.85%.

This Fund has zero exit load when redeemed post 1 year. This Fund would be the better choice for the investors.

Comparison of GOLD vs UTI Value Opportunities Direct Fund

Let’s assume an investor has invested lumpsum in Gold as well as UTI Value opportunities direct-growth in 2013.

The returns of both investments are as follows:

The rate of 10-gram gold in 2013 was Rs. 29,000 and now in 2023, the rate of gold is Rs.61,650. So, the gold rate of return has increased to 7.61% return rate.

In the meanwhile, the return rate of UTI Value Opportunities Fund – Direct Plan Growth has a return percentage of 13.22%.

Hence, the returns through the UTI Value Opportunities Fund-Direct plan have significantly higher return rates than gold. So, futuristically it is always advisable to invest in liquid funds.

Peers of UTI Value Opportunities Fund – Direct Plan Growth

Nippon India Large Cap Fund – Direct Plan – GrowthLarge Cap Fund

HDFC Top 100 Fund – Direct Plan – GrowthLarge Cap Fund

ICICI Prudential Large & Mid Cap Fund- Direct Plan – GrowthLarge & Mid Cap Fund

ICICI Prudential Bluechip Fund – Direct Plan – GrowthLarge Cap Fund

SBI Large & Midcap Fund – Direct Plan – GrowthLarge & Mid Cap Fund

DSP Equity Opportunities Fund – Direct Plan – GrowthLarge & Mid Cap Fund

Canara Robeco Bluechip Equity Fund – Direct Plan – GrowthLarge Cap Fund

UTI Mastershare Unit Scheme – Direct Plan – GrowthLarge Cap Fund

WhiteOak Capital Large Cap Fund – Direct Plan – GrowthLarge Cap Fund

The above are the top-performing large-cap mutual Funds in the same category.

For further details, please have a close look at the Fact Sheet.

UTI Value Opportunities Fund Manager

It is always advisable for mutual fund investors to know about the fund manager’s expertise to gain added trust in the scheme.

Mr.Amit Premchandani is the Fund Manager for UTI Value Opportunities Fund – Direct Plan-Growth.

• He holds a PGDM from IIM Indore and a CFA charter from CFA Institute, USA.
• He has completed a CA from ICAI.
• He graduated with a Bachelor of Commerce in 2001 from Heramba Chandra College, Kolkata. Amit joined UTI AMC in 2009 as a Senior Research Analyst and has covered Banks, NBFCs, telecom, and cement in his research role.
• In addition, he took up portfolio responsibilities in June 2014. He has over 13 years of experience.

Key Takeaways

• Potential for outperformance over the benchmark—Nifty 500 TRI and Nifty 50 indices. This equity fund is more diversified but at the same time minimizes the risk arising from pure sector funds while generating a reasonable return.
• It is suitable for investors looking to build their core equity portfolio for long-term wealth creation.
• The Fund looks to take aggressive sector positions based on valuation considerations and on medium-term growth prospects.
• The Fund can operate across the market cap spectrum following the “Value” investment style. While the portfolio will have a large cap bias, the midcap exposure could vary more widely based on valuation differentials.
•  A high-conviction portfolio which is evident from its high active share at the portfolio level as well as its active weight position at the stock level.

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