UTI Dividend Yield Fund wins NDTV Profit Mutual Fund Awards 2010

UTI Dividend Yield Fund has won the NDTV Profit Mutual Fund Awards 2010 in the Equity: Multi-Cap Category for the period ending June 30, 2010. The award for UTI Dividend Yield Fund indicates the Best Performance within the stated category, which had a total of 31 similar schemes, including this scheme.

Mr. U K Sinha, Chairman and Managing Director, UTI Asset Management Company Ltd. said, “This award is a recognition of our efforts to help our investors build their wealth and also for our investment philosophy that aims at enhancing quality of investment returns by balancing the investment risk.”

Ms Swati Kulkarni is the fund manager of UTI Dividend Yield Fund.

Methodology

Value Research Rating Score: It is a unified performance measure which summarises how a fund has performed historically, relative to the other funds in its category, for the risks it has taken.

For equity and hybrid funds, the calculation is based monthly performance while for debt funds, it is based on weekly performance. We have given a 30% weight to 1-Year performance and 70% weight to 3-Year performance.

We have arrived at this score by subtracting the fund’s Risk Score from its Return Score.

Risk Score: captures the fund’s risk of loss. It refers to absolute losses and even periods when the fund underperforms a risk-free guaranteed investment.

To calculate this measure, monthly/weekly fund returns have been compared against the monthly risk-free return for equity and hybrid funds and weekly risk-free return for debt funds.

Risk-free return is defined as State Bank’s 45-180 days Term Deposit Rate. The magnitude of underperformance has been added. The relative performance of the fund is expressed as a risk score.

Return Score: captures a fund’s risk-adjusted return in comparison to other funds in the category. The returns have been adjusted for dividend, bonus or rights.

The fund’s monthly/weekly return has been compared with the monthly/weekly risk-free return to arrive at the fund’s total return in excess of the risk-free return.

The average risk-adjusted return has been compared with the average category return to arrive at the final score. In case of a negative category average return, the risk-free return has been used as benchmark.