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 classes.
Let us talk about the flagship product – UTI Mid Cap Fund
UTI Mid Cap Fund
Investment objective
The objective of the scheme is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of mid-cap companies.
Investment strategy
The fund follows the following investment strategy –
- Focus on companies with scalable business models and long growth runway
- Open to investing in good companies whose business is going through a transitory phase of weakness OR undergoing a transformational change.
- Bottom-up approach for stock picking with sector agnostic allocation approach.
- 65% of the corpus is invested in mid-cap companies, with the balance distributed in small caps.
- Flexibility to stay invested in mid-caps that graduate to the large-cap status
Portfolio composition
The portfolio holds the major exposure in mid-cap stocks at 68% and the sectoral major exposure is Financial Services which accounts for roughly 17.60% of the portfolio. The top 4 sectors hold nearly 55% of the portfolio.
Source: UTIMF
Top 5 Holdings for UTI Mid Cap Fund
| Name | Weightage % |
| Tube Investments of India Ltd | 4.37% |
| Cholamandalam Investment & Finance Company Ltd | 3.14% |
| Federal Bank Ltd. | 3.05% |
| Shriram Finance Ltd | 2.42% |
| PI Industries Ltd | 2.38% |
Source: UTIMF
Performance
Source: UTIMF
The fund has given healthy returns by generating a CAGR (Compounded Annual Growth Rate) of 17.55% since inception.
Fund manager at UTI Midcap fund growth
The fund manager, Mr. Ankit Agarwal, joined UTI in August 2019. Presently, he has been designated as Fund Manager for managing UTI Mid Cap Fund. He has more than 12 years of experience.
Prior to joining UTI, he was working with Lehman Brothers, and Barclays Wealth and had been associated with Centrum Broking Ltd. also in the capacity of Sr. Vice President.
He has done his graduation from the National Institute of Technology (B.Tech.) and holds a postgraduate degree in Management (PGDM) from IIM, Bangalore.
Who should invest in the UTI Mid Cap Fund?
Investors looking to invest in a portfolio that invests in the high growth potential of medium-sized companies.
Why invest in this UTI Mid Cap Direct Fund?
- A true-to-label mid-cap fund with a focus on scalable business models and a long growth runway.
- A portfolio of mid-caps tends to offer higher growth potential than large-cap stocks, however, this is accompanied by potentially higher volatility. The strategy endeavors to manage this through prudent diversification and risk management.
- The Fund pursues a bottom-up process for stock selection and has a blended approach for both value and growth-style investing with a growth bias.
- The Fund maintains a well-diversified portfolio and follows a patient approach toward companies in the portfolio.
Horizon
- One should look at investing for a minimum of 5 years or more.
- Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
The UTI Mid Cap Fund is one of the oldest funds with a track record of 18 years and has delivered ~17.5% CAGR consistently.
Thus, it is best for investors who are willing to take some additional risk for good returns over a long-term spectrum.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
