As the nation’s equity markets evolve and aim towards reaching new highs, diversified funds such as the UTI Large or Mid Cap Fund are gaining momentum among investors seeking both balance in their portfolios and consistent growth. This open ended equity scheme provides exposure to both large and mid cap stocks, and focuses on long term capital appreciation.
Objective of the fund
According to the fund manager V. Srivatsa, “UTI Large & Mid Cap Fund aims to deliver consistent, long-term performance through a combination of relative value strategy. We aim to find quality companies going through their low valuation cycle in large caps and aim to discover undervalued mid and small cap companies. The fund valuations are below the benchmark validating the value strategy.”
Therefore, taking the above factors into consideration, here are five important insights to consider before investing in the UTI Large & Mid Cap Fund in 2025.
Strong return track record
The mutual fund has consistently delivered competitive returns across multiple time frames. Here’s a crisp summary of its performance:
Note: The performance figures mentioned above are illustrative and subject to market risks. Investors are advised to refer to the official UTI Mutual Fund website or the latest fund factsheet for updated returns and scheme-related information before making any investment decisions.
Hence, these figures underline the fund’s ability to generate wealth for long term investors, outperforming many peers and benchmarks.
Diversified portfolio with sectoral strength
This fund has been managed by V. Srivatsa since 2017, the fund’s portfolio is spread across 68 stocks. Financial services account for the largest sectoral allocation at 32%, followed by information technology, automobiles, healthcare, and telecommunications.
Furthermore, top holdings include HDFC Bank, ICICI Bank, ITC, Indus Towers, and Federal Bank, providing a blend of stability and growth. This portfolio structure clearly highlights planned diversification based on efficient sectoral allocation.
Expense ratio and minimum investment
The fund offers a competitive expense ratio, 1.93% for regular plans and 1.06% for direct plans. The aspirational investors can begin their investments in the fund with a minimum investment of ₹5,000. There is no entry load, and a 1% exit load applies if redeemed within one year.
SIP performance and volatility
Systematic Investment Plans (SIPs) in this fund have yielded attractive long term results. For example, a 5-year SIP would have grown at an annualised rate of 22.33%. The standard deviation of 14.45% and beta of 0.89 indicate moderate volatility, typical for large and mid-cap funds.
Suitability and risk profile
This scheme is ideal for investors with a medium to long-term horizon seeking capital appreciation through a mix of large and mid-cap equities. While the fund has outperformed benchmarks over several periods, it remains subject to market risks. Investors should align their risk appetite and investment goals before committing capital.
Disclaimer: Mutual fund investments are subject to market risks. Past performance is not a guarantee of future returns. Please consult a financial advisor and read scheme documents carefully before investing.