If you’re interested in investing in India, there are a handful of quality mutual funds available to U.S. investors that focus on this emerging market. But if you’re an investor living in India, you’re probably using Unit Trust of India, or UTI fund, a mutual fund company headquartered in India that offers dozens of mutual funds and exchange-traded funds.
American investors are probably unaware of the UTI Fund. But that lack of awareness could change in 2017.
In fact, now is a good time to do your homework and learn more about this compelling growth story in the mutual fund industry.
Now that China’s incredible growth has slowed, India appears poised to be the next big story in emerging markets. Part of that growth machine comes from capital investment, both from investors inside India and from investors around the world in developed countries. And India has a growing middle class and a government that supports economic development and investment safeguards.
Now enter Unit Trust of India, a significant player in Indian capital markets. Although most U.S. investors are best-suited investing in India through domestic mutual funds, the UTI Asset Management Co. Ltd., or UTI AMC, has an impressive suite of mutual funds available to residents of India and neighboring countries.
Investing in India: Mutual Funds at UTI
UTI Mutual Fund offers dozens of mutual funds, including diversified stock funds, sector funds, tax planning funds, index funds, bond funds, balanced funds and ETFs.
The UTI Mutual Fund website provides details, such as fund objective, fund holdings, management and NAV history for their funds. But the best way to find crucial information in a convenient summary is to look at the fact sheets for their funds.
After scanning through mutual funds at the UTI Fund, here are three sample funds to give you a cross section of offerings:
UTI Equity Fund: With an inception dating back to May 1992, this fund is one of the earliest portfolios managed by UTI. The UTI Equity Fund’s average annualized return since inception, through Dec. 31, 2016, is 11.7%. That’s outstanding for a core stock holding investing in large-cap stocks of Indian firms, such as top holdings HDFC Bank Limited (ADR) (NYSE:HDB) and Infosys Ltd ADR (NYSE:INFY), which stand to benefit from India’s long-term growth prospects.