Uti Midcap Fund: A Smart Investment Strategy

The UTI Mid Cap Fund is a mutual fund that predominantly invests in equity and equity-related securities of mid-cap companies. It has been in operation for 19 years and has generated a 17.88% return since its inception. The fund's latest net asset value (NAV) as of October 2024 is around ₹316.2642, with a minimum investment amount of ₹5000. It carries a high risk but is suitable for investors seeking high returns over 3-4 years, although they should also be prepared for potential moderate losses. The expense ratio for the fund is 1.72%-1.81%, with direct funds having a lower expense ratio than regular funds.

Understanding the UTI Mid-Cap Fund

The UTI Mid-Cap Fund is an open-ended equity fund that aims to provide 'Capital appreciation' by primarily investing in mid-cap stocks. The fund has a minimum investment amount of ₹500 for SIP and ₹5000 for lumpsum, with an expense ratio of 1.75%. It falls under the Mid-Cap category, selecting stocks for investment from companies ranked between 100 and 250 by market capitalisation.

UTI Mid-Cap Fund has achieved an AUM (Asset Under Management) of Rs 9788.75 Crores. The fund managers, Ankit Agarwal, focus on investing in quality companies for long durations to generate compounding returns. The top sectors for investment include Financial, Healthcare, Services, Automobile, and Capital Goods. The fund has delivered 17.88% returns since its inception 19 years ago.

UTI Mid-Cap Fund is suitable for investors who can invest for at least 3-4 years and are seeking high returns. However, investors should also be prepared for the possibility of moderate losses. It is important to note that mid-cap funds tend to fall more when stock prices decline, so while higher returns can be expected in the long term, there will be severe ups and downs along the way.

The fund has a Riskometer level of 'Very High' and investors are advised to understand their risk tolerance before investing. The latest NAV (Net Asset Value) of the fund as of 17th October 2024 is ₹316.2642.

How to invest in the UTI Mid-Cap Fund

The UTI Mid-Cap Fund is an open-ended equity fund that aims to provide 'Capital appreciation' by investing primarily in mid-cap stocks. The fund's latest NAV (Net Asset Value) is 316.2642 as of 17 October 2024. The fund has a minimum SIP investment of ₹500 and a lumpsum investment of ₹5000.

To invest in the UTI Mid-Cap Fund, you can follow these steps:

• Direct Purchase: You can buy mutual funds directly from the website of the fund house, in this case, the UTI Mutual Fund website. Simply create an account, complete your KYC, and start investing.
• Online Platforms: You can also invest through online platforms such as MF Central or MF Utility. These platforms usually offer a convenient way to invest in mutual funds and provide tools for analysis and portfolio management.
• Mutual Fund Distributor: If you are not comfortable with online investing, you can seek the help of a mutual fund distributor. Most banks also act as mutual fund distributors, so you can connect with your bank for assistance.

It is important to note that the UTI Mid-Cap Fund is suitable for investors who are looking to invest money for at least 3-4 years and are comfortable with the possibility of moderate losses. The fund has a very high risk associated with it, so investors should understand their risk tolerance before investing.

The UTI Mid-Cap Fund's performance

The UTI Mid-Cap Fund is a mutual fund that aims to generate long-term capital appreciation by predominantly investing in equity and equity-related securities of mid-cap companies. The fund has been in existence for 19 years and 4 months, delivering 17.88% returns since its inception.

As of 10th September 2024, the Net Asset Value (NAV) of the fund was ₹320.9261, with a change of 0.76% from the previous day. The fund size is ₹12,646.34 Cr, which is 3.8% of the investment in its category. The expense ratio of the fund is 1.72%, which is slightly lower than the category average of 1.84%.

The UTI Mid-Cap Fund is suitable for investors who are looking to invest for at least 3-4 years and are seeking high returns. However, investors should also be prepared for the possibility of moderate losses. The fund has a very high-risk level, as per SEBI's Riskometer, and has been rated below average in performance compared to its peers.

The fund's portfolio is largely conservative, with most of its holdings in Large Cap stocks and debt instruments. As of 31st July 2023, the fund had invested 97.11% in equity, 2.68% in Cash & Cash Equivalents, and 0.21% in debt. The top holdings of the fund include Cholamandalam Investment and Finance Company and Tube Investments of India.

Overall, the UTI Mid-Cap Fund offers a conservative investment strategy with potential for high returns, but it comes with a very high risk of negative returns.

The UTI Mid-Cap Fund's portfolio

The UTI Mid-Cap Fund portfolio is an open-ended equity fund that aims to provide 'Capital appreciation' by investing primarily in mid-cap stocks. The fund has a majority of its money invested in the top 5 sectors: Financial, Healthcare, Services, Automobile, and Capital Goods. The first five holdings of this fund are The Phoenix Mills Ltd., Indian Bank, Oil India Ltd., Shriram Finance Ltd, and Bharat Electronics Ltd. The fund has achieved Rs 9788.75 Crores worth of assets under management (AUM).

The expense ratio of this fund is 1.75%, and the latest NAV (as of 14-06-2024) is 293.2425. The fund has a consistency rating that indicates it has generated average returns with exceptional consistency. The fund managers are Ankit Agarwal, with 15 years of experience in managing equity and related investments.

UTI Mid-Cap Fund - Regular Plan has a portfolio that is largely conservative, with most holdings in Large Cap stocks and debt instruments. As of 31-Jul-2023, 97.11% was invested in equity, 2.68% in Cash & Cash Eq., and 0.21% in debt. The top holdings include Cholamandalam Investment and Finance Company and Tube Investments of India.

UTI Large & Mid-Cap Fund is another scheme that has 95.09% investment in domestic equities, with 41.16% in Large Cap stocks, 26.96% in Mid Cap stocks, and 11.35% in Small Cap stocks. The fund has 0.1% investment in debt. The top 10 stocks in the portfolio include Max Financial Services Ltd., Reliance Industries Ltd., and Aditya Birla Capital Ltd.

The UTI Mid-Cap Fund's risk and returns

The UTI Mid-Cap Fund is a mutual fund that invests predominantly in equity and equity-related securities of mid-cap companies. The fund aims to generate long-term capital appreciation, and it has been in existence for 19 years and 4 months as of July 2023.

Risk

The UTI Mid-Cap Fund is considered a very high-risk investment according to SEBI's Riskometer. This means that while it may offer higher returns in the long term, there is a greater possibility of severe fluctuations along the way. Mid-cap funds tend to fall more when stock prices decline compared to funds that invest in larger companies. Therefore, investors should be prepared for the possibility of moderate losses and only consider investing if they can remain invested for at least 3-4 years.

Returns

The UTI Mid-Cap Fund has delivered annualised returns of 19% over a period of 20 years. As of August 2024, the fund had generated returns of 44% in the previous year. The fund's historical performance has been rated as below average compared to other funds in its category.

Other Details

The fund has a minimum SIP investment of ₹500, and there is no lock-in period. The expense ratio is 1.72% for the regular plan, and the latest NAV as of 10 September 2024, was ₹320.9261.

Frequently asked questions