UTI Flexicap Fund

UTI Flexicap Fund: Who should invest and why to invest?

UTI Asset Management Company (AMC)

UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset class. 

Let us talk about its flagship product – UTI Flexicap Fund.  

About Fund 

1. Investment Objective

The fund seeks to generate long-term capital appreciation by investing predominantly in equity and related securities of companies in a flexible manner across the market capitalization spectrum. 

2. Investment Process  

The Fund follows a bottom-up stock selection method with well-defined metrics of free cash flows, capital efficiency, and ability to compound earnings.

The fund has a well-diversified portfolio and avoids sector as well as stock concentration. 

UTI-flexicap-fund-investment-process

3. Portfolio Composition 

The portfolio holds the major exposure in large-cap stocks at 77% and sectorally major exposure is to financial services that account for roughly one-fourth of the portfolio.

The top 5 sectors hold nearly 70% of the portfolio.  

UTI-flexicap-fund-portfolio-comparision
Note: Data as of 30th Sep 2022
Source: UTIMF

Top 5 holdings

Name Sector Weightage % 
Bajaj Finance Financial Services 6.06 
ICICI Bank Financial Services 5.59 
HDFC Bank Financial Services 4.26 
Infosys Information Technology 4.09 
Kotak Mahindra Bank Financial Services 3.92 
Note: Data as of 30th Sep 2022. 
Source: UTIMF 

Fund performance over 30 years

If you would have invested 10,000 at the inception of the fund, it would be now valued at Rs 3.64 lakhs whereas the benchmark (Nifty 500 TRI) would have fetched you Rs 2.91 Lakhs

UTI-flexicap-fund-performance-over-30-years
Note: Performance of the fund since launch; Inception DateMay 18, 1992 
Source: utimf.com 

The fund has given consistent returns and has outperformed the benchmark over the period of 30 years by generating a CAGR (Compounded Annual Growth Rate) of 12.56%.

Fund Manager 

The fund is managed by Ajay Tyagi. Mr. Tyagi has over 20 years of experience and has been managing the fund since January 2016. Mr. Ajay Tyagi, CFA is a Senior Executive Vice President and HeadEquity at UTI AMC.

In addition to managing a few domestic mutual fund schemes, he is also an investment advisor to a few India-dedicated offshore funds.

He is a CFA Charter holder from The CFA Institute, USA, and also holds a Master’s degree in Finance from Delhi University.  

Who should Invest? 

Investors looking to 

  • Build their core equity portfolio by investing in quality businesses across all sizes 
  • Invest in a fund with a disciplined approach to portfolio construction. 

Why to invest? 

  • The fund shall comprise high-quality businesses that have the ability to show strong growth for a long period of time 
  • Quality companies perform across the market cycle. 

Horizon 

  • One should look at investing for a minimum of 5 years or more. 
  • A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackling market volatility 
Conclusion 

The fund is the oldest fund with a proven track record of 30 years and has delivered 12.56% CAGR consistently.

Thus, suitable for even first-time equity investors who have a moderately high-risk appetite and can remain invested for a long period. 

Disclaimer

This is not recommendation advice. All information in this blog is for educational purposes only

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