Mutual Fund News : UTI Mutual Fund Launches UTI Focused Equity Fund

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UTI Mutual Fund (MF) has launched an open-ended equity scheme - UTI Focused Equity Fund.

Following a focused investment mandate, the scheme will be investing in maximum of 30 stocks across market capitalization, i.e. large cap, mid cap and small cap companies.

Accordingly, the investment objective of the scheme is to generate long term capital appreciation by investing in equity & equity related instruments of maximum 30 stocks across market caps. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

Under normal circumstances, 65% to 100% of the funds portfolio will be invested in Equity & Equity related instruments (maximum 30 stocks). Whereas upto 25% of its assets can be invested in Debt & Money Market Instruments including securitized debt. The Scheme may also seek to invest upto 10% of its net assets in Units issued by REITs and InvITs.

The investment strategy of UTI Focused Equity Fund as mentioned in the Scheme Information Document (SID) is as follows:

The scheme shall predominantly invest in equity and equity related securities (maximum of 30 stocks) across the market capitalization spectrum, considering the factors such as, but not limited to, business fundamentals, financial strength, sustainable cash flows, earnings growth potential, attractiveness of valuation, scalability of business, management quality etc.

The fund primarily relies on bottom-up stock picking. However, it would use the top-down approach from a risk management perspective.

As an active fund, UTI Focused Equity Fund will take advantage of the opportunities that present themselves from time to time because of the inefficiencies in the securities markets.

Hence, it would be difficult to estimate with any reasonable measure of accuracy, the likely turnover in the portfolio.

The AMC will endeavor to balance the increased cost on account of higher portfolio turnover with the benefits derived there from.

The scheme’s performance will be benchmarked against Nifty 500 – TRI (Total Return Index).

It will be managed by Mr Sudhanshu Asthana, and Mr Kamal Gada (overseas investments).

The NFO opens for subscription on August 04, 2021, and closes on August 18, 2021. The scheme will reopen for fresh investments on August 26, 2021.

The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Income Distribution cum Capital Withdrawal Option (Re-investment, Pay-out, and Dividend Transfer Plan).