UTI Mutual Fund launches UTI Focused Equity Fund

After a broad based rally in stock markets, a few experts are giving hints that the easy money is behind us. As the economy unlocks there will be money in stock specific moves, as everything is priced to perfection. Focused portfolios can be the solution going forward. On this backdrop, UTI Mutual Fund launches an open-ended equity scheme investing in maximum 30 stocks across market caps – ‘UTI Focused Equity Fund’.

The New Fund Offer closes on August 18, 2021. The scheme will re-open for subscription and redemption for an ongoing basis from August 26,2021. Minimum investment in this scheme is Rs 5000 and exit load is 1% if you choose to exit before completing one year from the date of allotment of units. The schemes is benchmark against Nifty 500 Index (TRI).

The investment objective of the scheme is to generate long term capital appreciation by investing in equity and equity related instruments of maximum 30 stocks across market caps. UTI Focused Equity Fund will pursue bottom-up approach in identifying stocks and will follow a blend strategy of investing in both growth and value stocks with a tilt towards growth stocks. The Fund endeavours to be optimally diversified investing across the sectors and market capitalisation. The fund will be managed by Sudhanshu Asthana.

“Focused investing is all about high-conviction and our philosophy has two dimensions to generate portfolio alpha. The first is to hand-pick a select set of companies from the larger universe by relying on our ScoreAlpha investment philosophy aided by rich experience in research and fund management to separate the wheat from the chaff. Second is to build the portfolio to demonstrate the conviction by building significant portfolio positions in each company, which may accentuate the portfolio outcome,” said Sudhanshu Asthana.

There are 26 focused equity schemes and on an average they have given 50% returns in last one year, as per moneycontrol data.