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.
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.
- 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
- 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|
- Redemption of units within 1 year - 1%
- Redemption of units after 1 year - NIL
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|
|Fund Managers||Mr. Sudhanshu Asthana|