Investment Objective
UTI Large Cap Fund, formerly UTI Mastershare Unit Scheme, seeks to generate long term capital appreciation by investing primarily in equity and equity related securities of large cap companies.
Investment Strategy
- UTI Large Cap Fund invests at least 80% of its corpus in large cap companies.
- It follows the GARP (Growth at Reasonable Price) style of investing, i.e. it seeks to invest in high growth companies available at reasonable valuation.
- It evaluates the Operating Cash Flow (OCF) and Return on Capital Employed (RoCE)/Return on Equity (RoE) of companies during its stock selection process.
- It prefers companies having competitive franchise, attributes of which include:
- Economic moats creating entry barriers for new competitors.
- Ability to generate higher RoCE and consistent cash flows.
- Competent management having strong corporate governance practices.
- Solid fundamentals with low debt, focus on profitability and efficient capital allocation.
- The scheme follows a top-down approach for sector selection and bottom-up approach for stock picking.
- It maintains a portfolio diversification and avoids sector and stock concentration.
- The fund has set internal allocation limits to ensure diversification with a limit of the lower of 35% of its portfolio or benchmark plus 12% for exposure to any single sector; up to 10% for a single stock; and up to 55% for the top 10 stocks.
- It relatively maintains a low churn portfolio for long-term growth
Who Should Invest
- Investors having investment horizons of 5 years and above
- Those seeking to invest in large cap companies having sound management capabilities, steady cash flows, earnings growth and reasonable valuation.
- Those looking to build their core equity portfolio for steady and long-term wealth creation.