UTI Focused Equity Fund NFO

UTI Mutual Fund has announced the launch of the UTI Focused Equity Fund. The scheme would be predominantly investing its assets in a maximum of 30 stocks across the market capitalization.

The New Fund Offer (NFO) starts on 04th August 2021 and will end on 18th August 2021. The allotment of units will be done on 25th August 2021 and the scheme will open for continuous sale and repurchase from 26th August 2021.

Investment Objective

The scheme’s investment objective is to generate long-term capital growth by investing its assets in equity and equity-related securities of large-cap, mid-cap, and small-cap companies but in a maximum of 30 stocks.

Features

The fund will be investing a minimum of 65% of its assets in the equity and equity-related securities of every market capitalization.
The fund may allocate its assets in debt or money market instruments and units issued by REITs and InvITs.
The fund can invest in any companies across the market capitalizations & sectors.
The portfolio will have a maximum of 30 stocks.

UTI Focused Equity Fund - Investment Strategy

Maintain a proper balance between Risk and Return
Transformation opportunities: Pick businesses where strategy is realigned to make the outcome more sustainable
Cyclical opportunities: When valuation will be attractive, the fund will pick the cyclical opportunities to get the benefits from mean reversion
Sustainable businesses: Fund will invest in companies with long term sustainable growth
Follows a blended approach in which a portfolio will have both growth and value stocks

UTI Focused Equity Fund - Investment Framework

Fund will construct a portfolio that will be concentrated in 30 stocks but also aims to get the diversification benefits.

Investment style: Blended with both growth and value stocks but a little tilt towards growth stocks.
Stock selection: Follows a bottom-up approach for which quality companies with long runway growth will be preferred.
Market cap: Invests across the market cap

Preferred allocation

Large Cap: 60%-70%
Mid Caps and Small Caps: 30% - 40%
Internal Limits: Single stock limit of 9.5%

Why invest in UTI Focused Equity Fund?

Uniquely Positioned: Portfolio of the fund is uniquely positioned with the potential to generate alpha
Concentrated Portfolio: Fund keeps a focused approach towards hand-picked high-conviction ideas
Optimal Portfolio Diversification: Invest in a maximum of 30 stocks across the market caps and sectors
Leverage of Research Expertise: Management team is well experienced, tracking a large set of companies

Who Should Invest?

This scheme is suitable for investors who are -

Interested in long-term capital growth.
Investors who want to invest in a concentrated yet diversified portfolio.
Investors who want to invest in companies across market capitalization.
Recommended for investors with an investment horizon of 5 years & above.

Asset Allocation Pattern

Instruments	Minimum % of total assets (Indicative)	Maximum % of total assets (Indicative)
Equity and Equity-related securities across the market caps in a maximum of 30 stocks	65%	100%
Debt & money market instruments	0%	25%
Units issued by REITs and InvITs	0%	10%

About the Scheme

Name of the fund	UTI Focused Equity Fund
Fund launched by	UTI Mutual Fund
Asset Management Company	UTI Asset Management Company Limited
Type of scheme	An open-ended equity scheme primarily investing its assets in a maximum of 30 stocks across the market capitalization.
Investment Objective	The scheme’s investment objective is to generate long-term capital appreciation by investing its assets in equity and equity-related securities of large-cap, mid-cap, and small-cap companies but in a maximum of 30 stocks.
Benchmark	NIFTY 500 Index TRI
Entry Load	Not Applicable
Exit Load	- Redemption of units within 1 year - 1% - Redemption of units after 1 year - NIL
Taxation	Taxed as Equity -If units are redeemed within 12 months, gains are taxed as short term capital gain tax @15% -If units are sold after 12 months, gains are taxed as long term capital gain tax @10% on the gains exceeding ₹ 1 lakh in a financial year
Minimum Application Amount	₹ 5,000 & in multiples of ₹ 1 thereafter
Minimum Additional Amount	₹ 1,000 & in multiples of ₹ 1 thereafter
STP & SWP	Available
Plans Available	Regular Direct
Options	Growth Payout of IDCW Dividend of IDCW
Fund Managers	Mr. Sudhanshu Asthana