UTI Large & Mid Cap Fund has offered a diversified investment portfolio and aims to invest in sound companies which provide margin of safety by trading cheaper, relative to their history or peers. According to the SEBI categorization of mutual funds, large and mid cap funds invest a minimum of 35% each in the equity and equity related instruments of large cap and mid cap companies. The Fund aims to provide stability with a biasness towards large cap companies and offers higher growth in the portfolio through investment in mid and small cap companies. Value Investing is a strategy that involves picking stocks which are trading at less than their intrinsic value.
Markets often over react to short-term news flow or sentiments, which gives the opportunity to the value investor to buy a stock below its intrinsic value. The Fund follows a top down approach to pick sectors which are available at below mean valuations with reasonable prospects. The investment strategy of the Fund is built around three tenets: relative valuation versus history or peer, growth opportunities at reasonable valuations and mean reversion. The scheme’s top holding consists of HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., Aditya Birla Capital Ltd., Reliance Industries Ltd., Federal Bank Ltd., ITC Ltd., Indus Towers Ltd., Interglobe Aviation Ltd., and Vedanta Ltd., which accounts for around 31% of the portfolio’s holdings. The Fund is suitable for investors looking to build their core equity portfolio for long-term wealth creation.
