New fund offer of UTI Multi cap fund to close on May 13
Amid heightened market volatility triggered by escalating tariff disputes and renewed Indo-Pak tensions, mutual fund investors are on the lookout for safer and more diverse investment avenues. The uncertainty offers an opportunity to long term investors. To enhance the product bouquet, UTI Mutual Fund has unveiled the new fund offer of UTI Multi Cap Fund (UMCF).
Investors looking to invest across a diversified portfolio may find UMCF attractive, as the scheme invests minimum 25% each in shares of large, mid and small sized companies. The performance will be benchmarked against Nifty 500 Multicap 50:25:25 TRI. Kartikraj Laxman will be managing the scheme.
UTI AMC is known for offering many diversified as well as sector funds. The mutual fund house employs an investment team of fund managers and research professionals. The investment approach is to identify stocks on the basis of return on capital employed and operating cashflow. Depending on the mandate of the scheme, the fund manager designs portfolios after considering the growth potential of the stock in medium to long term.
UMCF aims to generate capital appreciation over long term. Multi-cap schemes invest minimum half of their money to small and mid-sized companies. This means in the short term they can be volatile compared to a large cap equity fund, but in the long term, they can generate better risk adjusted returns. Investors with a penchant for risk, tend to invest in multi-cap funds. Investment managers and financial planners typically recommend such schemes with a five years timeframe. Many investors prefer to invest using systematic investment plans (SIP) while investing in such diversified equity schemes.
As per data released by Association of Mutual Funds in India, 30 multicap funds manage assets worth Rs 1.83 Lakh crore, as on April 30, 2025. Over last three years ended May 9, 2025, multi-cap funds as a category has given 19.68% returns on an average, as per Value Research.
NFO of UMCF will close on May 13.