Risk-return analysis of UTI schemes; UTI Corporate Office

Abstract

Since its inception in 1964, UTI has been constantly introducing schemes and has today become the largest player in the Indian Mutual Fund industry. Although it started out with a Fixed Income Open Ended Scheme, UTI has been gradually trying to shift its focus towards Growth Schemes Looking at the stock market, we find that the market is cluttered with Growth Schemes. Although these schemes had been doing extremely well till about a year back, after the collapse in the market, most of these schemes are showing negative returns. Perhaps, a Balanced Fund which gives medium returns but has a lower risk associated with it would have greater appeal in the present market environment. Also, most of the Growth Schemes in the market have very little product differentiation. Thus, an investor has to rely mainly upon the image of the organisation which introduces the schemes. Thus, in such a case improvement enhancement in the existing well-established product would be preferable to introducing a new one instead of churning out 'me toos' every three months.