UTI Flexi Cap Fund is an open-ended equity scheme offered by UTI Mutual Fund. Its primary purpose is to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity-related instruments across market caps. The fund follows a growth and value investing style. It can invest in both growth and value stocks.
Understanding UTI Flexi Cap
UTI Flexi Cap Fund holds significance in the Indian stock market as it is one of the largest and oldest flexi cap funds in India with over ₹30,000 crores in assets under management. The UTI Flexi Cap Fund has consistently outperformed the Nifty 500 Total Return Index for several years
The fund has a diversified exposure to the Indian market which helps to manage risk and potentially capture growth opportunities across different market segments. It focuses on companies with strong growth and are expected to perform well across different market conditions.
The fund is solely managed by Ajay Tyagi. He has been managing the fund since 2005 and has demonstrated a strong performance.
Asset & Portfolio Allocation
The fund is well diversified with over 40 stocks from different sectors. As of November 2023, UTI Flexi Cap Fund has the following asset and portfolio allocation:
Equity Allocation:
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- Equity holdings dominate the portfolio. These holdings represent 95.64% of the total assets.
Debt Allocation:
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- A minimal allocation of 0.18% is directed towards debt instruments. This indicates a greater focus on the equity holdings.
Other Asset Classes:
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- Other asset classes account for 4.14% of the portfolio.
Top Stock Holdings:
| Stock | Ticker | Last Price | Technical Score | Growth Score |
|---|---|---|---|---|
|
Bajaj Finance Limited
|
BAJFINANCE
|
8485.55
|
47
|
73
|
|
HDFC Bank Limited
|
HDFCBANK
|
1629.6
|
38
|
63
|
|
ICICI Bank Limited
|
ICICIBANK
|
1229.8
|
57
|
83
|
|
LTIMindtree Limited
|
LTI
|
0
|
39
|
78
|
- LTI (Larsen & Toubro Infotech) Mindtree Ltd.: 6.31% allocation. LTI Mindtree Ltd. is a global technology services company.
- HDFC Bank Ltd.: 6.24% allocation. HDFC Bank is one of India's leading private sector banks offering banking services.
- ICICI Bank Ltd.: 5.64% allocation. ICICI Bank is a major player in the Indian banking sector.
- Bajaj Finance Ltd.: 5.42% allocation. Bajaj Finance is a renowned non-banking financial company (NBFC) in India.
Allocation by Market Capitalization:
- Large-cap stocks dominate the allocation. These stocks represent 59.08% of the portfolio.
- Mid-cap stocks hold a significant share at 25.35%, while small-cap stocks make up 11.21% of the total portfolio.
Allocation by Sector:
The fund has a diversified sectoral allocation, with significant exposure to:
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- Financial sector at 23.61%,
- Technology sector at 14.23%,
- Services sector at 12.74%,
- Healthcare sector at 12.08%.
UTI Flexi Cap Fund CAGR
As of December 2023, the following is the performance of the UTI Flexi Cap Fund NAV over different periods:
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1-Year Return:
The fund has delivered a return of 15.68% (CAGR) over the past year.
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3-Year Return:
The compound annual growth rate (CAGR) for the 3 years stands at 16.5%.
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5-Year Return:
Over a more extended period, the fund has achieved a CAGR of 14.5% for the 5-year duration.
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Returns Since Inception:
Since its inception in 2005, UTI Flexi Cap Fund has maintained a CAGR of 14.2%.
Benchmark Comparison:
The fund has consistently outperformed its benchmark, the Nifty 500 index. While there was a slight underperformance in the last 1 year, the fund has exhibited strong performance over 3, 5 years, and since its inception.
Also, UTI Flexi Cap Fund offers direct and regular growth plans. Investors invest in these plans for higher returns.
Comparison with other Flexi Cap Funds
As of December 2023, UTI Flexi Cap Fund's annual return stands at 15.68%. In comparison with other flexi cap funds, Quant Flexi Cap Fund leads the pack with an annual return of 23.49%. JM Flexicap Fund and Parag Parikh Flexi Cap Fund closely follow with annual returns of 20.2% and 20.18%, respectively.
UTI Flexi Cap Fund, with its annual return of 15.68%, positions itself within the range of other Flexi Cap funds. While it may have a slightly lower return compared to the highest performer, investors need to consider various factors such as risk tolerance when evaluating the overall appeal of a fund.
Risk Factors Associated with UTI Flexi Cap Fund
Here are some of the key risks associated with investing in the UTI Flexi Cap Fund:
- Market Risk: The fund invests in volatile equity markets. However, the flexi cap approach allows diversification across large, mid, and small caps to manage this risk.
- Concentration Risk: At an individual company level, concentration risk is managed by restricting exposure to any stock at 5%.
- Liquidity Risk: Flexi-cap funds can invest in illiquid small caps. UTI manages this by managing sufficient liquidity in the portfolio.
- Performance Risk: The fund has delivered superior risk-adjusted returns over longer periods of 3-5 years and since inception.
- Inflation and Interest Rate Risk: Rising rates pose a threat which is true for all equity funds. UTI Flexi Cap Fund has the flexibility to shift allocation to defensive stocks as needed.