UTI Long Duration Fund(A-IDCW)
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Business Overview
UTI Long Duration Fund (A-IDCW) is a mutual fund designed for investors seeking stable returns over an extended period. This fund primarily invests in long-term debt instruments, making it suitable for risk-averse individuals looking to enhance their portfolio with fixed-income securities. Its focus on duration helps mitigate interest rate risks while aiming for capital appreciation. With a seasoned management team and a robust investment strategy, this fund stands out in the fixed-income space, appealing to conservative investors aiming for steady growth.
- Ideal for long-term investors
- Focuses on long-term debt instruments
- Mitigates interest rate risks
- Managed by experienced professionals
- Aims for capital appreciation
- Provides stable returns over time
Investment Thesis
UTI Long Duration Fund (A-IDCW) stands out due to its strong promoter credibility, robust digital service expansion, and attractive valuation compared to peers. This combination positions it as a compelling investment opportunity for retail investors seeking long-term growth.
- Backed by UTI Asset Management Company, a trusted name in Indian finance.
- Significant focus on digital services, tapping into the growing fintech trend.
- Valuation metrics indicate potential for upside against industry competitors.
- Strong historical performance enhances investor confidence.
- Diversified portfolio reduces risk while maximizing returns.
Opportunity vs Risk
- Potential for long-term capital growth
- Stable income through regular dividends
- Diversification in fixed income assets
- Rising interest rates may boost returns
- Interest rate fluctuations impact NAV
- Credit risk from bond issuers
- Market volatility affects fund performance
- Liquidity concerns in long-duration bonds
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10BusinessHighThe fund operates in a stable sector but lacks a significant competitive advantage.
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10GrowthHighRevenue and profit growth have been inconsistent over the past few years.
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10ProfitabilityHighROE and ROCE are moderate, with OCF slightly lagging behind net profit.
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8ValuationHighValuation metrics are average compared to peers, indicating limited upside.
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7BalanceHighThe balance sheet shows manageable debt levels but limited reserves.
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6GovernanceGoodPromoter holding is decent, but there are some concerns regarding disclosures.
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5DriversGoodGrowth drivers are limited, with several execution risks identified.
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5TechnicalsGoodMarket sentiment is neutral, with low liquidity affecting price action.