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UTI Large & Mid Cap Mutual Fund Analysis: Should You Invest?
UTI Large & Mid Cap Mutual Fund: A Turnaround Story
UTI Large & Mid Cap Mutual Fund: A Turnaround Story
The UTI Large & Mid Cap Mutual Fund has shown a noticeable improvement in its return profile since 2021, following a period of erratic outcomes. The fund’s recent performance suggests a potential turnaround, but it needs to sustain this momentum to overcome its earlier patchy track record. This analysis aims to provide insights into the fund’s key fundamentals, recent portfolio changes, and investment considerations to help investors make informed decisions.
Key Takeaways:
1. Fund Performance: The fund exhibited erratic outcomes until 2020, but has shown a visible improvement in its return profile since 2021.
2. Fund Strategy: The fund follows a top-down approach to select sectors with reasonable prospects and maintains a diversified portfolio. It focuses on sound businesses offering a margin of safety and avoids concentration in its holdings.
3. Recent Portfolio Changes: The fund has seen new entrants such as Indo Count Industries, Caplin Point Laboratories, and The Great Eastern Shipping Company, while completely exiting holdings like ICICI Lombard General Insurance Company, NHPC, and Suzlon Energy.
4. Fund Manager: Managed by V. Srivatsa for over 6 years, the fund’s recent performance and portfolio changes reflect the fund manager’s strategy and decision-making.
The UTI Large & Mid Cap Mutual Fund has exhibited a significant improvement in its return profile, with a return of 34% in the past year. However, it’s important to consider several factors before making an investment decision.
Fund Overview
Date of Launch: 16 February 1993
Category: Equity
Type: Large & Midcap
AUM (Assets Under Management): Rs. 2,380 crore
Benchmark: NIFTY LARGE MIDCAP 250 TOTAL RETURN INDEX
NAV (Net Asset Value): Rs. 138.64 (Growth Option)
IDCW (Income Distribution cum Capital Withdrawal): Rs. 67.54
Minimum Investment: Rs. 5,000
Minimum SIP (Systematic Investment Plan) Amount: Rs. 500
Expense Ratio: 2.09%
Exit Load: 1% for redemption within 364 days
Fund Manager
Name: V. Srivatsa
Tenure: 6 years, 7 months
Recent Portfolio Changes
New Entrants: Indo Count Industries (Nov), Caplin Point Laboratories, The Great Eastern Shipping Company (Dec)
Complete Exits: ICICI Lombard General Insurance Company, NHPC, Suzlon Energy (Nov), eClerx Services, Eris Lifesciences (Dec)
Investment Considerations
The fund, previously known as UTI Core Equity, transitioned to a large- and mid-cap mandate in 2018. It follows a top-down approach to select sectors with reasonable prospects, available below the mean valuations. The fund prefers sound businesses offering a margin of safety for individual stock picks and maintains a fairly diversified portfolio, avoiding concentration.
Analysis
The fund’s historical performance exhibited erratic outcomes until 2020, but has shown a visible improvement in its return profile since 2021. It is crucial for the fund to sustain this momentum to overcome its earlier patchy track record.
Should You Invest?
Considering the fund’s recent performance improvement and its investment strategy, it may be an attractive option for investors seeking exposure to large and mid-cap equities. However, it’s important to conduct further research and consider your investment goals, risk tolerance, and investment horizon before making a decision.
FAQ
Q1: What is the historical performance of the UTI Large & Mid Cap Mutual Fund?
A1: The fund exhibited erratic outcomes until 2020, but has shown a visible improvement in its return profile since 2021.
Q2: What is the investment strategy of the fund?
A2: The fund follows a top-down approach to select sectors with reasonable prospects, maintains a diversified portfolio, and focuses on sound businesses offering a margin of safety.
