UTI Flexi Cap Fund Review

About the fund:

As per the Securities and Exchanges Board of India (SEBI), Flexi-cap funds should have 65% minimum investment in equity and equity-related instruments. There is no limit on how much these funds can invest across market caps - large, mid, or small companies. The current allocation of UTI Flexi Cap Fund in equities is 100%

Fund Manager:

UTIFCF is managed by Mr. Ajay Tyagi, a CFA and he is working as a fund manager since 2005

Who Can Invest?

The fund is suitable for investors who are seeking capital appreciation for a minimum period ranging from 3 to 5 years or more and have the ability to hold on to their investments in the fund during market cycles.

Exit Load: The fund has an exit load of 1% for the units redeemed in excess of 10% of the investments within 365 days.

Stocks & Sectors

The top 10 Stocks and sectors are as follows:

Asset Allocation:

Low Turnover Ratio, Low to moderate stock concentration, and adequate exposure to mid and small-cap stocks

The current number of total stocks in the UTI Flexi-cap Fund is 62. The fund has a turnover ratio of 11%, indicating low churning and stable holding of the investments.

The top 5 stocks in the portfolio of UTIFCF constitute about 24% of the total portfolio and the top 10 stocks allocation in the portfolio allocation is at 40.06%

This lower to moderate asset allocation to the top 5 and top 10 constituents of the portfolio leads to lower dependency on the performance of a set of stocks for the fund to deliver decent returns.

Exposure to mid and small-cap stocks in the portfolio is at 35%. Though this exposure allows its investors to capture additional returns during the uptrends of the markets, increased volatility is also expected due to the same.

Fund Performance & Risk Profile:

Lower Volatility and higher risk-return ratio: As shown above, the fund is able to deliver stable returns to its investors successfully over the years and the fund has a standard deviation of 21.55%, while its index S&P BSE 500’s standard deviation is at 21.81% and the 3-year Sharpe ratio of UTIFCF is at 0.77%, better than its benchmark S&P BSE 500

A Drawback; High concentration of sectors: Though the fund is able to successfully steer through different market cycles, the only drawback we are able to notice is its high concentration of allocation to the top 5 sectors at 71%

Recommendation: We recommend equity mutual fund investors accumulate the fund due to its ability to give stable returns to its investors with comparatively lower standard deviation and higher risk-return ratios than its benchmark, however high sectoral concentration and individual risk profile are the factors that remain to be seen.

For further queries regarding investment planning and guidance, please call us at +91 7305923322

Please write to us at research@adityatrading.com

To read more on different types of financial goals, Click Here

To read more Mutual Funds related posts from ATS, check our blog at https://adityatrading.in/