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5 Benefits of Investing in UTI Flexi Cap Fund

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An open-ended equity plan called UTI Flexi Cap Fund makes investments in big, midsize, and small-cap firms. This fund provides exposure to a diversified portfolio of stocks across market capitalization. Here are 5 key benefits of investing in uti flexi cap fund:

1. Flexibility to invest across market caps:

UTI Flexi Cap Fund can invest a minimum of 35% each in large, mid, and small-cap stocks. This provides the fund manager the flexibility to shift allocations between market caps based on prevailing conditions and opportunities. The fund manager can tap the growth potential in large caps or seek higher returns from mid and small caps. This dynamic allocation helps optimize returns over the long term.

2. Wide investment universe:

As a Flexi Cap fund, UTI Flexi Cap Fund has access to invest in a larger universe of stocks. The fund can choose the best ideas across all segments instead of limiting itself to a single market cap. This wide universe allows the fund manager to construct a robust portfolio of growth and value picks. A larger universe also ensures adequate diversification and risk management.

3. Blend of growth and value style:

The UTI Flexi Cap Fund employs both growth and value investing styles. Growth investing focuses on stocks with strong earnings growth prospects, while value investing looks for stocks trading cheaper than their intrinsic worth. The fund identifies stocks with robust growth drivers like new products, market expansion, etc. that can deliver high future growth in earnings. It also spots stocks that are undervalued or overlooked by the market and are available at a discount to their fair value. By blending both styles, the fund can benefit from the upside potential of growth stocks as their earnings increase over time. It can also gain from multiple expansions or P/E re-rating in value stocks as the market discovers its intrinsic value. This balanced approach allows the fund to harness the strengths of growth and value philosophies.

4. Experienced fund management:

UTI Flexi Cap Fund is managed by an experienced fund management team. The fund managers have a proven track record in managing flexi cap and diversified equity funds. They leverage UTI AMC’s strong research capabilities for stock selection. The fund management team has successfully navigated different market cycles and generated competitive long-term returns.

5. Suitable for long-term goals:

UTI Flexi Cap Fund suits investors with a long-term investment horizon of 5 years or more. The fund aims to generate long-term capital appreciation through a diversified portfolio of equity stocks across market caps and sectors. It can be considered as a core equity fund in one’s portfolio for goals like retirement, children’s education, house purchase, etc. requiring long-term growth of capital.

Conclusion

UTI Flexi Cap or a uti nifty index fund provides a well-diversified equity portfolio suitable for investors looking for long-term capital growth. The flexibility to invest across market caps allows tapping into opportunities across segments. With an experienced fund management team, competitive long-term performance can be expected. For long-term equity exposure, investors can consider investing in UTI Flexi Cap Fund. Opening an account on 5paisa provides easy access to invest in this fund digitally.

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