POSTED BY October 21, 2009 COMMENTS (13)
ONHave 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 .
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 .
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.
Mainly this fund is a very less risky fund with very high return , You can invest in this fund in Following Scenarios
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
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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.