Review of UTI Mahila Unit Scheme Mutual Fund , Excellent Mutual Fund
POSTED BY ON October 21, 2009 COMMENTS (13)
Have you seen a Diamond or anything equivalent to that ? No ? I will show you one today . I am going to review a fund which has performed so well that It despite being a Debt oriented Mutual funds has given returns which we expect from Equity over long term . Yes !! ..
This fund has no more than 30% allocation in Equity ever and despite that, it has given a long term return of 16.6% (at the time of writing) and has many more accolades to its credit . Lets have a deeper look .
UTI Mahila Unit Scheme-G [Link]
Most of us run around to find the best equity fund who will give us excellent returns . In long run , an average person requires 12-15% of annual returns on his investments , and this fund has given close to 16% return Since Inception . This kind of return what we should expect from equity in Long term .
This is a Fund which is open only for Women of India , Males who wish to invest in this Fund can ask their wives to Invest , Make sure you understand the Income tax Clubbing rules .
Highlights of this Fund
- 8 yrs old Fund (Inception Apr 2001)
- No Entry Load
- Exit Load of .75% if sold before 1 yr (as on 21/10/09)
- Return Since Inception : 16.6%
- 5 yrs return : 18.28%
- Best return in 1 yr time frame is +54%
- Worst return in 1 yr time frame is -10% .
- Consistently outperformed Its Benchmark ( Crisil H 75:25 ) and ‘Category Average” in all the time frames
- Can not invest more than 30% in Equity .
- Well Diversified Portfolio across Equity and Debt investment .
Comparison with Nifty
Below is the chart of Nifty and UTI Mahila Unit Scheme till Dec 08. You can see how its has given close returns like Nifty. Primarily this fund is a Debt Fund, 70% of this Fund is always in Debt + Cash, only maximum 30% funds are in Equity at any point of time, And still this fund is giving such an excellent Returns.
Who should Invest in This Fund ?
Mainly this fund is a very less risky fund with very high return , You can invest in this fund in Following Scenarios
- If you have short term goals for 2-3 yrs, You can invest in this fund, You have to accept that event this fund has equity exposure and in really bad times, even this can disappoint you. Don’t expect it to return the above returns with surety, Its just expectation and you know how “expectations” are broken in Life 🙂 . Key to Happiness is Low expectations 🙂 .
- People near their retirement life and who can take moderate amount of risk can park some part of their money in this fund (Dividend Option) .
- People who are very conservative and adore Fixed Income Products like FD’s , Endowment Insurance , NSC etc and willing to taste “high returns” can put some money here.
Other Alternatives or Good Funds in Same Category
- UTI CRTS 81
- Unit Linked Insurance Plan ’71
- FT India Life Stage FoF 40s
- Birla Sun Life Asset Allocation Conservative
Disclaimer
I have suggested this fund to some of my Paid Clients as part of their Investment Planning , but final decision of Actually investing in this fund is their itself if they want to invest in this or not !! . I do not guarantee the returns (who does ? )
Comments
Please share your valuable comment and tell us about some other fund as an option . Also let us know if you found this Mutual funds good or not !! .
Note : Wrote this article while travelling from Varanasi to Delhi
Nice article. But you have to put the publishing date some where in your articles.. Feel a bit lost if we are reading an article relevant to the present market scenario 😉
Hi Kathir
Its there in the URL of the article !
Hi Manish,
Is this fund till doing good? Currently the report card isnt so impressive. I am trying to figure out a fund for a horizon of 3 years.
This is an old article . Take your decisions with your analysis now
Do you recommend to invest in SIP or lumpsum for this debt fund?
SIP will be good .
Manish
@Vaibhav
ULIP 71 looks good by what you say. I would vote for it (though I havent looked at it closely)
The reason I call UTI Mahila a diamond is because of the performance and returns it has given despite having most of its money in Debt .
with 8% expection from Debt and 12% from equity , its return expectation is 9.2% (70:30 debt:equity) . However , the returns it has provided are much better than that .
manish
Finally Manish mentions something on UTI plans.. I particularly was investigating on the ULIP '71.. This is what I had uncovered..
Benefits of the plan:
Liquidity = Since open ended, money can be withdrawn at any point of time
Insurance = Term cover (fixed/reducing) upto 15L without any medical test
Accident cover = upto Rs 50,000
Tax benefits = under Sec 80C, if you are salaried this is what you generically target.
Now, why do you call Mahila Unit a diamond when comparing the above you notice that Mahila Unit doesnt offer you Life Cover+Tax savings.. Comparing the Best and Worst performances and considering the fact that allocation in ULIP '71 is Debt 60% – Equity 40%, odds are that ULIP '71 will meet the reqs of someone younger too as an optional debt fund..
What do you and others feel..
Thanks and Regards,
-Vibhav
@Chandra
I also checked , Its not there on icici direct .. Some mutual funds may not be there online with some particular broker .
@Anoop
ok great .. Thanks for the recommendation .. I am sure there are many more .. I just suggested one of them . Thanks for your involvement .
@Milind
We talked over mail 🙂
Manish
I checked this fund in the latest issue of Mutual Fund Insight of Value Research. This fund is under the catagory 'Hybrid: debt oriented'. It has 5 stars with 2 years returns as 8.7 % and 3 years returns as 12 %. I think these returns are very good considering it is a debt oriented. Only other 5 star fund in this category is UTI CRTS 81, which has given better returns for last 2 years but less returns in long run compared to UTI Mahila.
Manish,
I think Reliance MIP and HDFC MIP Long term are also good. They have almost same ratio of equity and debt and returns are also comparable. Both are around 5 years old. They are available for all and online too. That is not the case for UTI Mahila Scheme. I also liked UTI but then the restriction forced me to move to Rel and HDFC MIPs.
I think they can blend very well with over all portfolio providing debt component with some good return.
By the way your articles carries a fresh look and provides a different point of view. I like reading them. Thanks alot for writing.
Regards,
Anoop
Thanks for your valuable suggest. I was trying to find this mutual fund in ICICIDirect, but dont see under UTI fund. any idea.