UTI Mid Cap Fund came into existence on April 7, 2004. It is an open ended equity scheme investing predominantly in mid cap companies. The Fund’s strategy focuses on investing in companies with scalable business models and a long growth runway. The Fund is also open to investing in good companies whose businesses are going through a transitory phase of weakness or undergoing a transformation. The Fund pursues a pure bottom-up stock selection approach to pick businesses with healthy financials and potential for sustenance of margins over a period of time. The Fund also has a well-diversified portfolio with about 78 stocks covering various sectors and industries. Noteworthy, Midcap stocks fall between large cap and small cap stocks and are typically determined based on the market capitalization of the companies. The Funds investing in midcap companies provide investors an opportunity to benefit from the growth stories of medium sized businesses. UTI Mid Cap Fund is suitable for investors looking for an investment in a portfolio predominantly investing in mid cap companies and willing to supplement their core equity portfolio with its underlying growth potential.
UTI Mid Cap Fund is an open ended equity scheme. It invests predominantly in mid cap companies. The Fund’s strategy focuses on investing in companies with scalable business models and a long growth runway. The Fund is also open to investing in good companies whose businesses are going through a transitory phase of weakness or undergoing a transformation. The Fund pursues a pure bottom-up stock selection approach to pick businesses with healthy financials and potential for sustenance of margins over a period of time. The Fund also has a well-diversified portfolio with about 78 stocks covering various sectors and industries. UTI Mid Cap Fund has an AUM of over Rs. 7,729 crores with over 4.77 lakhs of unit holder accounts as of May 31, 2023. The Fund is a true to label product and therefore, would prefer to have an allocation in mid cap and small cap companies in the range of 85-90% in the portfolio at all points in time.
UTI Mid Cap Fund has about 69% invested into midcap companies, 18% into small cap companies and the remaining in large cap companies as on May 31, 2023. The scheme’s top holdings consist of Cholamandalam Investment and Finance Co. Ltd., Federal Bank Ltd., Astral Ltd., Tube Investments of India Ltd., PI Industries Ltd., Shriram Finance Co. Ltd., Coforge Ltd., Polycab India Ltd., J K Cement Ltd., and Bharat Forge Ltd., which accounts for about 24% of the portfolio’s holdings. The Fund with its diversified exposure aims to strike a balance between risk and reward by following a patient approach towards companies in the portfolio and with the right mix of companies with a strong Return on Capital Employed (RoCE) and Cash flow profile. This is likely to aid in mitigating sharp return divergence and volatility of the portfolio.UTI’s rich experience in research and fund management, coupled with the coverage of large cross section of companies in the mid and small cap universe will help the Fund in picking quality stocks and also avoid the poor ones.
