UTI

Motilal Oswal Asset Management 01 June 2026 Monthly Market Outlook Motilal Oswal sees weak macro as an opportunity — mid & small caps may have already absorbed the worst of FPI selling, and broader markets are showing stronger earnings growth than narrow large-cap indices. MACRO VIEW Weak = Opportunity MID & SMALL CAPS Worst Likely Past BROADER MARKETS Earnings Edge STRATEGY Active Preferred Summary Motilal Oswal Asset Management sees the current weak macro backdrop as an opportunity rather than a reason for caution. The AMC believes mid and small caps have likely already absorbed the worst of FPI ownership decline, while broader markets continue to deliver stronger earnings growth than narrow large-cap indices. Growth opportunities are visible across both new-economy themes — EVs, EMS, renewables, defence, digital platforms — and cyclical recovery plays such as capital markets, select NBFCs, and metals & mining. The AMC favours active strategies and broader market exposure, with the key risk to monitor being prolonged elevated crude prices. The detail Macroeconomic outlook Motilal Oswal Asset Management highlighted that weak macro may present opportunities for investors. The current environment is being shaped by geopolitics-led high oil prices, pressure on forex reserves, FPI selling, and INR depreciation. These pressures are visible across markets — but, in the AMC’s view, the very conditions creating short-term noise are also setting up the opportunity for selective, disciplined entry into well-positioned segments. Market & equity view The AMC noted that mid and small caps may have already seen the worst of FPI ownership decline, suggesting the heaviest selling pressure in these segments may be behind us. Broader markets are also showing stronger earnings growth compared to narrow large-cap indices — reinforcing the case for looking beyond the top-100 names. Growth opportunities Motilal Oswal sees opportunities across a wide set of themes: EVs, EMS, renewables, defence, recycling, capital markets, select NBFCs, digital platforms, electronics, luxury, metals & mining, and select software companies. The mix spans both structural new-economy growth and cyclical recovery plays — pointing to an environment where stock and sector selection matter more than passive index exposure. Key risk to monitor The principal risk identified by the AMC is the possibility of high oil prices sustaining for longer, which would extend pressure on the currency, current account, and inflation — and could change the macro setup more durably than a transient shock. What this means for investors Action points Motilal Oswal’s guidance for navigating June 2026 centres on leaning into broader markets, favouring active strategies, and not flinching at short-term macro noise: Favour active mutual fund strategies. In an environment where stock selection drives returns, active management has an edge over passive index exposure. Consider broader market opportunities. Earnings growth remains stronger outside narrow large-cap indices — broader exposure may be where the next leg of returns comes from. Stay invested in growth-oriented themes. EVs, EMS, renewables, defence, digital platforms, and other structural growth segments offer long-term potential. Avoid reacting to short-term macro weakness. The very pressures creating noise today may be setting up the opportunity — let the framework do the work. Monitor the key risk of elevated oil sustaining longer. Prolonged high crude prices would extend currency, current account, and inflation pressures. Equity Motilal Oswal AMC Market Outlook Mid & Small Caps Active Strategies Growth Themes June 2026 Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully. The views expressed are those of the speaker and do not constitute investment advice.

UTI Mutual Fund 12 May 2026 Equity Markets UTI’s valuation indicator has moved into the “increase equity” zone, with large caps better placed than mid and small caps amid global uncertainty. EQUITY ALLOCATION Increase LARGE CAPS Comfortable MID & SMALL CAPS Expensive STYLE BIAS Value tilt Summary UTI sees Indian equity markets stabilising after crude swings, geopolitical tensions, and FII volatility. The AMC’s proprietary valuation indicator has moved into the “increase equity” zone, with large caps looking more attractive than richly priced mid and small caps. Value is positioned to potentially mean-revert versus growth and quality, and investors are advised to add equity in a staggered manner with disciplined asset allocation. The detail Macroeconomic outlook Equity markets have faced sharp crude oil swings, geopolitical tensions in West Asia, rupee pressure, and continued FII volatility. Despite this uncertainty, markets have repeatedly attempted to stabilise as investors reassess the long-term picture. Globally, the US economy remains relatively resilient to crude oil shocks because energy intensity has reduced and the US has become a net energy exporter. Risks, however, remain from elevated corporate profits, high AI-led capex, uncertain returns from AI investments, and the impact of higher US bond yields on equity valuations. India-specific risks For India, the key risks include elevated crude oil prices, supply-chain disruptions, fertilizer availability, current account pressure, and currency weakness. India’s goods trade balance remains a structural challenge, though services exports continue to provide meaningful support to the overall external account. Market & equity view UTI’s proprietary equity valuation indicator is currently in the “increase equity allocation” zone, suggesting investors may consider raising equity exposure in a staggered manner. Large-cap valuations appear more comfortable compared to mid and small caps, which remain relatively expensive. The AMC also highlighted that growth and quality have underperformed value, creating scope for a possible style reversal. What this means for investors Action points UTI’s guidance for navigating the current setup centres on staggered allocation, discipline, and avoiding emotional decisions: Increase equity allocation in a staggered manner. Phase in additions over time rather than deploying lumpsum at one go. Prioritise asset allocation and risk management. Stick to a target mix that fits your goals rather than reacting to short-term moves. Consider hybrid funds for lumpsum allocation. Useful for cushioning short-term volatility while keeping equity exposure. Stay disciplined with a long-term approach. Avoid panic exits during negative news flow and let the asset allocation framework do the work. Equity UTI Mutual Fund Market Insights Asset allocation Large cap Value investing May 2026 Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully. The views expressed are those of the speaker and do not constitute investment advice.

UTI Mutual Fund Anurag Mittal · Head of Fixed Income 08 May 2026 Fixed Income UTI’s Anurag Mittal sees liquidity, not duration, as the safer anchor for fixed income positioning through 2026. DURATION VIEW Cautious LIQUIDITY Comfortable INFLATION Sticky RBI STANCE Patient SUMMARY Elevated oil prices, geopolitical disruptions, and potential El Niño risks are keeping inflation sticky. RBI is likely to stay patient, prioritising liquidity over rate action. Front-end fixed income strategies look better placed than long-duration bets in this uncertain macro setup. Key takeaways 1Markets have shifted from expecting global rate cuts to pricing in tighter monetary conditions due to sticky inflation risks. 2Sustained crude above expected levels could trigger stagflationary pressures globally, especially for oil-importers like India. 3RBI is expected to prioritise liquidity support while staying cautious on rate action until second-round inflation effects emerge. 4Front-end yield curve positioning remains preferable amid uncertainty around growth, inflation, and fiscal dynamics. 5El Niño risks and higher fertilizer costs could disproportionately impact food inflation through pulses, oilseeds, and rain-fed crops. 6Liquidity conditions remain supportive due to RBI interventions and anticipated dividend transfers, anchoring short-term rates. What this means for investors Strategy by investment horizon UTI’s framework maps investor time horizon to the most suitable fixed income strategy in the current environment: HORIZON 3–12 months Money market or low-duration strategies. Short maturities limit exposure to rate volatility while capturing the comfortable liquidity environment. HORIZON ~12 months Short-term or corporate bond strategies. A modest step up the curve with reasonable accrual, without taking aggressive duration risk. HORIZON 2+ years Income plus arbitrage strategies. Suited for investors comfortable with a longer holding period and looking for tax-efficient accrual. Avoid aggressive duration calls until there is better clarity on crude oil, inflation trajectory, and RBI policy direction. The detail Macroeconomic outlook Global fixed income markets remain under pressure from geopolitical uncertainty, crude oil volatility, tariff-related inflation, and shifting US interest rate expectations. While manufacturing activity has improved, this may partly reflect frontloading due to supply-chain concerns. Rising input costs across manufacturing and services continue to create sticky inflation risks. India-specific risks The key risks for India remain crude oil prices, fertilizer costs, food inflation, monsoon distribution, and El Niño uncertainty. However, El Niño does not always translate into a weak monsoon — the actual impact depends on rainfall distribution and crop sensitivity, particularly for pulses, oilseeds, and rain-fed crops. Central bank view: Fed & RBI UTI expects the US Federal Reserve to remain patient and data-dependent. For India, RBI is also likely to stay in wait-and-watch mode, since current inflation pressure is largely supply-side driven. Even if inflation rises toward 5–5.5%, RBI may not hike immediately unless second-round inflation effects appear. Liquidity is expected to remain comfortable over the next 6–12 months, supported by banking system surplus liquidity and expected RBI dividend flows. Duration positioning UTI is more constructive on the front end of the yield curve. Money market, low-duration, short-term, and corporate bond strategies appear better placed than aggressive long-duration funds. Long-duration bonds may remain vulnerable to crude oil shocks, inflation surprises, fiscal pressure, currency movement, and geopolitical risks. Fundyantra Insight The evolving macro setup suggests that liquidity visibility — not duration aggression — may become the primary anchor for fixed income positioning in 2026. Front-end strategies offer the cleaner risk-reward until RBI’s stance and the crude trajectory become clearer. Fixed income UTI Mutual Fund Market Insights RBI policy Duration view May 2026 Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully. The views expressed are those of the speaker and do not constitute investment advice. Fundyantra’s commentary is editorial in nature and should not be construed as a recommendation.