Investment Objective
UTI Mid Cap Fund seeks to generate long term capital appreciation by investing primarily in equity and equity related securities of mid cap companies.
Investment Strategy
- UTI Mid Cap Fund allocates at least 65% of its total assets to mid cap companies and prefers to allocate 85-90% of its total assets in mid cap and select small cap companies.
- The scheme prefers companies having scalable business models and long growth runways. The fund, however, is open to invest in good companies whose business/s are going through a transitory phase of weakness or undergoing a transformational change.
- It also prefers companies run by seasoned management carrying attributes of product innovation, cost leverage, profitable volume growth and high return on invested capital.
- It follows a bottom-up approach for stock selection, remaining sector-agnostic while ensuring prudent diversification.
- It retains its flexibility to invest in mid cap companies, which get upgraded to large cap companies.
- The fund has set internal allocation limits to ensure diversification. It can allocate up to the lower of 35% of its portfolio or benchmark plus 12% in a single sector; up to 6% in a single stock; and up to 35% in top 10 stocks.
- The fund prefers companies having generating or having the potential to generate high Return on Invested Capital (RoIC).
- It follows a blend of value and growth styles of investing with a bias toward growth style.
- The scheme follows a low concentration strategy by aiming to maintain a well-diversified portfolio of at least 60 stocks.
Who Should Invest
- Investors having an investment horizon of 5 years and above looking for long term capital appreciation by investing in medium sized companies.
- Those seeking to supplement their core equity portfolio by gaining exposure to the high growth potential of mid-sized companies.