Setting a realistic financial goal is a crucial first step for successful investing. While seeking consistent investment rewards is vital, comprehending associated risks is equally essential for optimal long-term outcomes. Mutual funds offer a versatile option for achieving financial goals across various timeframes and asset classes. Among these, flexi-cap funds present an avenue for long-term wealth creation.
Flexi-cap funds, such as UTI Flexi Cap Fund, allocate at least 65% of assets to equities across diverse market capitalizations – large-cap, mid-cap, and small-cap. UTI Flexi Cap Fund, established in 1992, boasts a robust track record of sustained performance, managing a corpus of over Rs. 25,822 crores as of July 31, 2023. The fund caters to long-term investors seeking quality businesses with potential for economic value creation.
UTI Flexi Cap Fund adheres to an investment philosophy anchored in three pillars: Quality, Growth, and Valuation. Quality signifies businesses capable of maintaining high Return on Capital Employed (RoCE) or Return on Equity (RoE) over extended periods. Such businesses generate robust cash flows even in challenging market conditions, fueling economic value. Growth highlights consistent and predictable growth trajectories, prioritizing secular growth over volatile cycles. This minimizes surprises for investors and aids in compounding economic value.
The fund invests across market capitalizations, focusing on businesses with the potential for sustained growth. The top holdings include prominent names like HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., and Kotak Mahindra Bank Ltd., accounting for around 45% of the portfolio as of July 31, 2023.
UTI Flexi Cap Fund exemplifies a blend of quality and growth, embodying a strategy rooted in economic value creation. This makes it an attractive choice for long-term investors aiming to harness the potential of quality businesses and steady growth trajectories.
