Publish Date:
UTI Mutual Fund has launched UTI Small Cap Fund.
It is an open ended equity scheme that will be predominantly investing in small cap stocks.
The investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities of small cap companies. 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 and Equity related instruments of small-cap companies.
The fund can also hold up to 35% of its assets in Debt & Money Market Instruments including securitized debt, and has flexibility to invest up to 10% of its assets in Units issued by REITs and InvITs.
UTI Small Cap Fund shall invest primarily in equity and equity related instruments of small sized companies i.e. 251st company onwards in terms of full market capitalization.
The funds investment style will be biased towards small sized companies having High RoCEs and Strong OCFs. It will follow bottom up approach to pick quality companies with long run-way for growth.
The fund will have a preferred portfolio allocation of 65% to 80% in small cap stocks and 20% to 35% in mid cap stocks.
UTI Small Cap Fund’s performance will be benchmarked against Nifty Small Cap 250 TRI (Total Returns Index).
It will be managed by Mr Ankit Agarwal and Mr Kamal Gada (dedicated Fund Manager for making overseas investments).
The NFO opens for subscription on December 02, 2020, and closes on December 16, 2020. The scheme will reopen for continuous Sale and Repurchase within 5 business days from the date of allotment of units under NFO.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter with no upper limit.
The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).