UTI Flexi Cap Fund: A Decade of Wealth Creation and Market Excellence

UTI Flexi Cap Fund: A Decade of Wealth Creation and Market Excellence

One of Uti Mutual Fund’s Flexi Cap mutual fund schemes is UTI Flexi Cap Fund Direct-Growth. This fund was established on January 1, 2013, making its 11 years and 1 million of existence. As of December 31, 2023, uti flexicap fund direct-growth has assets under management (AUM) of ₹25,156 Crores, making it a medium-sized fund in its category. With an expense ratio of 0.87%, the product is more expensive than the majority of comparable Flexi Cap funds. 

The past year’s direct growth returns for flexi cap fund were 17.46%. It has produced returns of 14.46% on average year since start. Every four years, the fund has quadrupled the amount invested in it.

Fund Goal

Uti mutual fund introduced the flexi cap fund, a diversified equities strategy, on May 18, 1992. 

Ajay Tyagi is the manager of the UTI Flexi Cap Fund, previously called the UTI Equity Fund. The financial services, IT, healthcare, consumer services, consumer durables, and automotive industries get the lion’s share of the scheme’s investments. 

The investment goal of the plan is to generate long-term capital growth primarily via flexible allocations across various market capitalization levels to stocks and equity-related instruments. Investing in stocks that provide positive operational cash flows and strong returns on capital employed is how it attains capital appreciation. 

The Fund distributes its investments across a variety of securities, such as derivatives, debt and money market instruments, REITs, InvITs, and domestic and foreign shares.

Who ought to make UTI Flexi Cap Fund investments? 

Those who want to build a core equity portfolio by making long-term investments in high-quality companies that create sustainable value should choose the fund. Investors having a minimum 5-year time horizon are most suited for this program. 

Because of its reliable performance, low expense ratio, skilled fund administration, sound investment approach, and capacity to provide strong returns for investors, the fund is often rated as one of the most well-liked selections in the Flexi Cap category. The plan has had good historical performance, routinely outperforming both its benchmark and category average. Since its launch, it has produced a 12.34% CAGR (Compound Annual Growth Rate). 

Investors that have a strong tolerance for risk and long-term objectives may consider this strategy. If, on the other hand, your goal is short-term and low-risk investing, there could be better plans available to you. 

What advantages come with funding the UTI Flexi Cap Fund?

Since its launch, the fund has produced a CAGR of 12.34%, outpacing the 11.78% CAGR of its benchmark, the NIFTY 500 TRI.

Over the previous five to ten years, it has a great track record of steadily increasing profits while maintaining margin stability. The scheme’s 5-year annualized return is 12%, which above both the benchmark and category average.

The volatility of the fund is less than that of its benchmark. This is due to its objective of selecting high-quality companies in industries with secular development potential in order to create economic value, as opposed to investing in very volatile cyclical sectors. 

The uti nifty index fund employs an investment approach known as “bottom-up stock picking.” By concentrating on specific firms and their fundamentals as opposed to letting market swings or macroeconomic issues affect them, the fund manager may be able to boost returns. 

In conclusion 

As its name implies, the UTI Flexi Cap Fund may invest across market capitalization in order to take advantage of opportunities in various market categories and adjust to shifting market circumstances.