UTI Large Cap Fund is India’s first equity-oriented fund (launched in October 1986) and has a track record of wealth creation of over 37 years. UTI Large Cap Fund is an open-ended equity scheme that primarily invests in large cap companies with competitive advantages in their respective fields, following the Growth at Reasonable Price (GARP) investment style, where a reasonable price is paid to buy a company’s stock.
The Fund seeks to invest in companies with strong fundamentals, controlled borrowings, consistent revenue growth, profitability focus, higher return on capital, and consistent operating cash-flows generation, enabling future expansion and avoiding share dilution. UTI Large Cap Fund is a portfolio of leading companies, with the top 10 stocks accounting for 52% of the portfolio.
The scheme is currently overweight in Information Technology, Consumer Services, Consumer Durables, Automobile and Auto Components, and Telecommunication, and underweight in FMCG, Oil, Gas & Consumable Fuels, Construction, Power and Metals & Mining. The fund has a corpus of over Rs. 12,082 crore, the fund aims for long-term capital appreciation or income distribution and has distributed a total dividend of about Rs. 4,400 crore. UTI Large Cap Fund has yielded a CAGR of 15.60% since its inception, outperforming the benchmark S&P BSE 100 TRI by 14.43%. Investing in the fund has grown from Rs. 10 lakhs to Rs. 22.37 croresas, generating over 223 times returns over the last 37 years.
