Setting a realistic financial goal is the first-step towards successful investing for any investor. Choosing an investment option that consistently rewards you while understanding the associated risk is essential for long-term optimal outcomes. Mutual fund options can be explored for short-term to long-term financial goals, offering a wide range of products across different asset classes. UTI Mutual Fund’s Flexi-cap funds are open-ended equity funds that invest at least 65% of total assets in equity assets of companies across different market capitalizations. Launched in 1992, this fund has a long-term track record of consistent performance and a corpus of over Rs. 25,452 crores. As of September 30, 2023, it is suitable for long-term investors seeking quality businesses with potential to create economic value. The fund is one of the oldest in the category and offers a suitable investment option.UTI Flexi Cap Fund is an investment philosophy based on three pillars: Quality, Growth, and Valuation. The fund focuses on businesses with strong growth over time and seasoned management.
Quality refers to a business’s ability to sustain high Return on Capital Employed (RoCE) or Return on Equity (RoE) over time, even during challenging times. High quality businesses generate strong cash flows, which contribute to economic value creation. Growth, on the other hand, signifies long-term secular growth, with a steady and predictable trajectory. High growth businesses enable compounding of economic value, making the intersection of quality and growth a favorite stock selection.
The last pillar of the fund’s investment philosophy is “Valuations”. This investment philosophy emphasizes the importance of valuations, particularly the Price to Earnings (P/E) multiple. P/E is a short hand metric for a business’s cash flow generation and value creation potential over time. High RoCE and growth businesses often create more value over time, making them attractive for long-term investors. UTI Flexi Cap Fund invests in market capitalization, with top ten holdings including HDFC Bank, LTIMindtree, Bajaj Finance, ICICI Bank, Infosys, Avenue Supermarts, Kotak Mahindra Bank, Info-Edge (India), Coforge, and Titan Co. Ltd., accounting for 45% of the portfolio’s corpus as of September 30, 2023.
