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An open ended scheme investing in equity, debt and Gold ETFs
- An open ended scheme investing in equity, debt and Gold ETFs
- The scheme aims to diversify allocation across equity, debt and gold asset classes
(A)Redemption / Switch out within 30 days from the date of allotment – 1.00%. (B) Redemption / Switch out after 30 days from the date of allotment – NIL (*wef September 05, 2024)
SWP/SIP/STRIP
Not Applicable
Equity & equity related instruments: 65-80% (Medium to High) Debt and Money Market instruments (including securitised debt)*: 10-25% (Low to Medium) Gold ETFs: 10-25% (High) Units issued by REITs & InvITs: 0-10% (Medium to High) *The fund may invest up to 50% of its debt portfolio in securitized debt
The objective of the Scheme is to achieve long term capital appreciation by investing predominantly in a diversified portfolio of equity and equity related instruments. The fund also invests in debt and money market instruments with a view to generate regular income. The fund also invests in Gold ETFs. The portfolio allocation is managed dynamically.
However, there is no assurance or guarantee that the investment objective of the Scheme would be achieved.
An open ended scheme investing in equity, debt and Gold ETFs
An open ended scheme investing in equity, debt and Gold ETFs
- A diversified portfolio equity, debt and gold assets
- The Fund follows top down approach for large caps and bottom up for mid & small caps
- Dynamic management of equity portfolio
- Generates return with a limited downside risk
This product is suitable for investors who are seeking*:
- Long term capital appreciation. Investment in equity, debt and Gold ETFs with a minimum allocation of 10% in each asset class.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
- Investors looking to create long term wealth
- Investors looking for a multi asset allocation route for portfolio diversification
Investment Horizon:
- Ideal for investment with a time horizon of preferably, 5 years and above
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of broader equity market
An open ended scheme investing in equity, debt and Gold ETFs
UTI Multi Asset Allocation Fund (UTI MAAF) follows a model guided asset allocation strategy that dynamically manages allocation across equity, Gold and fixed income. This approach brings discipline in asset allocation based on relative attractiveness of an asset class and overcomes emotional biases associated with Investing. The fund endeavors to deliver portfolio diversification across asset classes and aim to generate better risk-adjusted returns across market cycles.
UTI Multi Asset Allocation Fund invests across equity (net long exposure: 40%-80%), gold (10%-25%) and fixed income (10-25%) driven by an in-house proprietary asset allocation model guided by fundamental and valuation-based factors that determines the net equity allocation for the fund and allocation to gold is based on relative performance of Gold as compared to Equity gauged by Gold/Equity (G/E) Ratio trend.
The fund shall take exposure to arbitrage (long stock, short futures) to manage gross equity exposures at 65% (to maintain Equity status of the fund) of total portfolio. The balance portfolio will be invested in the gold etf and fixed income securities.
The UTI MAAF Model determine the allocation of Equity and Gold.
For equity allocation the model assesses four factors that have been proven for having correlation with the market forward returns to determine the net equity allocation. These factors are:
- Valuation based factors: Have negative correlation with market forward returns
a) 1Y Forward Price to Earnings (PE) Ratio – Higher the P/E ratios, lower the equity allocation
b) TTM* Price to Book (PB) Ratio – Higher the P/B ratios, lower the equity allocation
- Yield based factors: Have positive correlation with market forward returns
a) TTM* Dividend Yield – Higher the dividend yield, higher the equity allocation
b) Yield Gap – Yield gap is difference of Equity Yield (1/1 year Forward Nifty 50 P/E Ratio) and Bond Yield (10-year GSEC Yield). Higher the yield gap relative to history, higher the equity allocation
*TTM – Trailing 12 months
For gold allocation the model assesses the Gold/Equity (G/E) Ratio which is based on historical trends. When G/E Ratio is below mean, the allocation to Gold is Higher and vice versa.
The Residual Allocation goes to fixed income through exposure in high rated Fixed Income & money market instruments.
Though the asset allocation in the scheme shall be managed dynamically, the endeavor will be to maintain at least 65% of the total portfolio of the fund in domestic equity & equity related instruments (based on annual average of the monthly averages of opening and closing figures) to attract equity taxation benefits as per prevailing tax laws.
- Portfolio Diversification – Intends to invest 3 asset classes, i.e equity, gold and fixed income
- Disciplined approach – Dynamic asset allocation based on in-house model driven approach which brings disciplined to investing.
- Eliminates behavioral biases – Model guided asset allocation based on valuations to eliminate individual biases
- Professionally managed – Managed by a team with vast experience in research & portfolio management
- Tax efficient – Endeavors to provide equity taxation*
*Note: The asset allocation in the scheme shall be managed dynamically as per stated Investment objective, investment strategy, asset allocation in Scheme Information Document (SID), with an endeavor to maintain at least 65% of the total portfolio of the fund in domestic equity & equity related instruments (based on annual average of the monthly averages of opening and closing figures) to attract equity taxation benefits as per prevailing tax laws. The fund will take exposure to derivatives/ arbitrage to manage gross equity exposures at 65% of total portfolio.
- Investors looking for long term wealth creation
- Investors looking for a diversified portfolio of equity, gold and fixed income
- Investors looking for a dynamic asset allocation solution to minimise risk of market volatility
- Investors seeking better risk adjusted and tax efficient reasonable returns
Open-ended equity scheme investing in Equity – For long-term wealth creation, Fixed Income – For income generation & Gold ETF –Hedging against inflation & currency depreciation
Launched in November 2008, it withstood market cycles for 13 years with its disciplined, valuation-driven asset allocation strategy using a proprietary financial model
With dynamic asset allocation and period review and rebalancing, the fund focuses on generating better risk-adjusted returns by reducing portfolio volatility
Combining asset classes with different return and risk profile to provide a balance between risk & reward
Performance track record across market cycles
Optimal asset allocation strategy for long term wealth creation
Tax-efficient way of portfolio diversification (subject to prevailing tax laws)