UTI-Flexi Cap Fund – Direct Growth

The UTI Flexi Cap Fund is a diversified equity scheme that was launched on 18th May 1992 by UTI Mutual Fund.

The UTI Flexi Cap Fund, formerly known as UTI Equity Fund, is managed by Ajay Tyagi. The scheme distributes the majority of its investments across the financial services, IT, healthcare, consumer services, consumer durables, and automobile sectors.

The scheme’s investment objective is to achieve long-term capital appreciation by predominantly investing in equities and equity-related securities flexibly across different market capitalisation levels. It achieves capital appreciation by investing in equities that generate high returns on capital employed and positive operating cash flows.

The UTI Flexi Cap Fund allocates its investment across different instruments, including domestic and overseas equities, derivatives, debt and money market instruments, REITs, and InvITs.

Pros & Cons

Who should invest in UTI Flexi Cap Fund?

The UTI Flexi Cap fund is suitable for investors looking to establish a core equity portfolio by investing in high-quality businesses that generate sustainable value over the long term. This scheme best suits investors with a time horizon of at least 5 years.

The UTI Flexi Cap fund is consistently ranked among the most popular options within the Flexi Cap category due to its consistent performance, low expense ratio, experienced fund management, solid investment strategy, and ability to provide good returns to investors. The historical performance of the scheme has been strong, and it has consistently beaten its benchmark and category average. It has delivered a 12.34% CAGR (Compound Annual Growth Rate) since its inception.

The scheme is suitable for investors with long-term goals and a high-risk appetite. However, there may be better schemes for you if your investment objective is low-risk and short-term.

What are the benefits of investing in the UTI Flexi Cap Fund?

• The UTI Flexi Cap Fund has generated a CAGR of 12.34% since its inception, outperforming its benchmark, the NIFTY 500 TRI, which has a CAGR of 11.78%.
• It has a strong history of consistent earnings growth over the last 5-10 years, with stability in margins. The 5-year annualised return for this scheme is 12%, higher than the benchmark and category average.
• The instances of negative returns under the UTI Flexi Cap Fund are 0% over a 5-year and 10-year investment horizon and 0.2% over a 3-year investment horizon.
• The UTI Flexi Cap Fund is less volatile than its benchmark. This is because it focuses on selecting high-quality businesses in secular growth industries that can generate economic value instead of cyclical sectors that are highly volatile.
• The scheme is managed by a seasoned fund manager who serves as the Head of Equity at UTI Asset Management Company and has a good track record of performance.
• The UTI Flexi Cap Fund follows a “bottom-up stock picking” investment strategy. This strategy allows the fund manager to focus on individual companies and their fundamentals rather than being influenced by macroeconomic factors or market trends, which can lead to potentially higher returns.
• As the name suggests, the UTI Flexi Cap Fund has the flexibility to invest across market capitalisation, which can help it adapt to changing market conditions and take advantage of opportunities in different market segments.