For the investors who are looking for investing to meet long-term wealth creation goals, here is one mutual fund product category. Flexi-cap funds are open-ended equity funds investing at least 65% of total assets are invested in equity assets of companies across the different market capitalizations viz., large-cap, mid-cap or small-cap funds. UTI Flexi Cap Fund is one of the oldest funds in the category (launched in 1992) and has a long-term track record of consistent performance. The Fund has a corpus of over Rs. 24,000-Crore and trusted by over18-Lakh investors (as on April 30, 2022). This offering from UTI Mutual Fund is suitable for any long-term investor looking for a fund that endeavors to invest in quality businesses having the potential for creating economic value for investors.
UTI Flexi Cap Fund’s investment philosophy is built around the three pillars of Quality, Growth and Valuation. The portfolio strategy would be to focus on businesses that have the ability to show strong growth for a long period of time and are run by seasoned management.
‘Quality’ signifies the ability of a business to sustain a high Return on Capital Employed (RoCE) or Return on Equity (RoE) over a long period of time. ‘Growth’ signifies long-term secular growth for the business. The fund emphasizes on businesses that have steady and predictable growth trajectories rather than cyclical and unpredictable growth. The last pillar of the fund’s investment philosophy is ‘Valuations’. Valuations are very important as an entry point into a great business and therefore one should very carefully study this before entering a stock.
The Fund invests across the market capitalization spectrum following the “Growth” style of investment. The scheme’s top ten holding consists of Bajaj Finance Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., Kotak Mahindra Bank Ltd., L&T Infotech Ltd., Avenue Supermarts Ltd., HDFC Ltd., Info-Edge Ltd. and Astral Ltd. which accounts for around 39% of the portfolio’s corpus as of April 30, 2022.
Investors with a moderate risk profile and looking to invest for at least 5 to 7 years to meet a long-term financial goal, may consider investing in this fund. UTI Flexi Cap Fund is suitable for those equity investors looking to build their ‘core’ equity portfolio and seeking long-term capital growth through investment in quality businesses that generate economic value.
