UTI Smallcap Fund - NFO
UTI Mutual Fund has announced the launch of UTI Small Cap Fund. The scheme would be investing in smallcap companies which rank below the Top 250 companies in terms of market capitalization. As per the press release, the UTI smallcap fund aims to invest in companies with scalable business models backed by experienced management and generate high returns for investors.
The New Fund Offer (NFO) starts from 02 December 2020 and will end on 16 December 2020.
Investment Objective
The investment objective of the scheme is to provide long-term capital appreciation by investing in a diversified portfolio of equity & equity-related securities of smallcap companies.
Features
- The Fund will be investing 65-100% of its assets in the stocks of smallcap companies.
- The Fund will follow a rigorous & pragmatic approach to pick quality stocks for building the portfolio.
- The Fund has the flexibility to put money in companies or businesses going through a temporary weak phase or transformational changes.
- The fund will invest in a blend of both growth & value stocks with a tilt towards growth stocks.
Why invest in the UTI Small Cap Fund?
Reasons to Invest in UTI Small Cap Fund:
- Scalable Businesses: The fund focuses on selecting high & consistent growth companies having sustainable business models.
- Growth Opportunities: The fund aims to exploit ample growth opportunities in the smallcap space which can generate good returns for investors.
- Well-diversified Portfolio: The fund aims to build a diversified portfolio of smallcap stocks across sectors with scalable businesses & high growth opportunities over the long run.
- Risk Assessment Framework: A 360° risk assessment framework helps to mitigate risks by avoiding poor stocks and picking good stocks with growth opportunities.
- Investment Approach: Following a bottom-up approach for selecting stocks to build a portfolio helps to find good businesses with healthy financials and scalable business models.
Suitability - Who should invest in UTI Small Cap Fund?
This scheme is suitable for investors with a high-risk appetite who are -
- Interested in Long term capital appreciation.
- Interested in investing in an equity scheme which invests in equity & equity related instruments of the smallcap companies.
- Interested in investing a small portion in smallcap funds to achieve the benefits of diversification in their equity portfolio.
Assets Allocation Pattern-
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Equity & Equity related securities of smallcap companies | 65 | 100 | High |
| Debt and Money market instruments including securitized debt | 0 | 35 | Low to Moderate |
| Units that are issued by REITs and INVITs | 0 | 10 | Moderate to High |
About the scheme-
| Name of the fund | UTI Small Cap Fund |
| Fund launched by | UTI Mutual Fund |
| Asset Management Company | UTI Asset Management Company Limited |
| Type of scheme | An open-ended equity scheme investing primarily in the stocks of smallcap companies. |
| Investment Objective | The investment objective of the scheme is to generate capital appreciation over the long term by investing in equity & equity related instruments of small-cap companies. |
| Benchmark | Nifty Small Cap 250 TR |
| Entry Load | Not Applicable |
| Exit Load | 1% of applicable NAV - If units are redeemed or switched out within 12 months. Nil - If units are redeemed or switched out after 12 months. |
| Minimum Application Amount | Rs. 5,000 & in multiple of Rs.1 thereafter |
| Minimum Additional Amount | Rs. 1,000 & in multiple of Rs.1 thereafter |
| STIP, DTP & SWP | Available |
Step up facility Any Day SIP Micro SIP | Available |
| Plans Available |
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| Options |
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| Fund Managers | Mr. Ankit Agarwal and Mr. Kamal Gadal (for overseas investments) |
SIP Details
| Type | Minimum Installments | Minimum Amount |
| Monthly | - | Rs.100 & in multiple of Rs.1 thereafter |
| Quarterly SIP | - | Rs. 300 & in multiple of Rs.1 thereafter |