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Objectives & Functions of UTI Mutual Funds

Original post by Tom Gresham of Demand Media

The UTI Asset Management Co. Ltd., formerly the United Trust of India, manages the UTI Mutual Funds. The UTI Mutual Funds can trace their history to the founding of the Unit Trust of India in 1963. Unit Trust of India opened the country's first mutual fund in 1964, enjoying a monopoly on the industry in the country for more than 20 years. UTI states on its website that it hopes to be the most preferred mutual fund in India.

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Stability

UTI Mutual Funds espouse an emphasis on stability in its investment strategies, according to its website. In particular, the company strives to provide mutual fund opportunities that travel a less volatile investment path than the broader market. In this vein, UTI aims to convey a feeling of safety to its clients. In fact, UTI does not pursue an exceptionally ambitious goal for the overall performance of its funds, proclaiming a target of performing in the top quartile of funds within each fund's peer group.

Allocation

UTI Mutual Funds seek diversity and balance in the portfolios of each of their funds, according to the company website. The funds are actively managed so that they can respond to market conditions. The company states that it puts equal emphasis in the areas of asset allocation and sectoral allocation, seeking a balance that will allow funds to weather the vagaries of the market.

Size

Initially, at its formation, UTI's mutual funds primarily served small investors. However, it has grown over the years and now UTI's stable of funds is designed to accommodate a range of investors, including those with small investments and those with large ones. UTI has more than 55 funds, including liquid funds, debt funds and equity funds, giving investors a variety of fund strategies to select from. The large size of the operation includes in-house research and risk management teams.

Miscellaneous

Among the stated objectives of UTI Mutual Funds is a desire to be an admired, trusted company in the view of its stakeholders and therefore to practice transparency with the management of its funds. The company also aims to be innovative in its practices, including its delivery of customer service.


                   

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About the Author

Tom Gresham is a freelance writer and public relations specialist who has been writing professionally since 1999. His articles have appeared in the "Washington Post," "Virginia Magazine," "Vermont Magazine," "Adirondack Life" and the "Southern Arts Journal," among other publications. He graduated from the University of Virginia.


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