Any investor may succeed in investing by first setting a reasonable financial objective. While finding an investment choice that can regularly pay off is crucial, it’s also crucial to comprehend the risk involved in order to strive for the best long-term result. For achieving financial objectives, both short- and long-term, while selecting to invest from a wide range of products within the asset class, mutual fund options can be investigated. Here is one category of mutual fund products that investors may search for when making investments to achieve long-term wealth development objectives. Open-ended equity funds known as flexi-cap funds invest at least 65% of their total assets in equity securities of firms with diverse market capitalizations, such as large-cap, mid-cap, or small-cap funds. One is UTI Flexi Cap Fund.The three pillars of Quality, Growth, and Valuation serve as the foundation of the UTI Flexi Cap Fund’s investment strategy.
The portfolio approach would be to concentrate on companies with a lengthy track record of strong growth and with seasoned management.“Quality” is the ability of a business to sustain a high Return on Capital Employed (RoCE) or Return on Equity (RoE) over a long period of time, producing strong cash-flows that create economic value.“Growth” on the other hand signifies long term secular growth for the business.High-quality businesses create economic value, but high-growth businesses enable the compounding of this value, so the fund’s favorite hunting ground for stock selection is the intersection of quality and growth.“Valuations” are an important metric for investing in a business, and the P/E multiple is often misunderstood valuation technique.
RoCE, reinvestment opportunities, and free cash flow should be considered when valuing a business.The Fund invests across the market capitalization spectrum following the “Growth” style of investment, with LTIMindtree Ltd., ICICI Bank Ltd., Bajaj Finance Ltd., HDFC Bank Ltd., Kotak Mahindra Bank Ltd., Infosys Ltd., Avenue Supermarts Ltd., HDFC Ltd., Info-Edge (India) Ltd., and Coforge Ltd. as its top ten holdings.UTI Flexi Cap Fund is a good option for equity investors wishing to develop their “core” stock portfolios and pursue long-term capital development through investments in reputable companies that provide economic value. Investors wanting to reach a long-term financial objective with a moderate risk tolerance may want to consider investing in this fund for at least 5 to 7 years.
