UTI Large & Mid Cap Fund: Scaling new heights, leaving rivals behind

UTI Large & Mid Cap Fund, launched in May 2009, has consistently ranked in the top 30 percentile within the large and midcap fund category of the CRISIL Mutual Fund Ranking (CMFR) for four consecutive quarters up to September 2024.

The fund’s assets under management stood at Rs 4,086 crore in September 2024, up from Rs 1,196 crore in September 2021.

 

V Srivatsa has managed the fund since May 2017. The fund aims to generate long-term capital growth by primarily investing in large and midcap stocks.

 

Trailing returns

 

The fund outperformed its benchmark (Nifty LargeMidcap 250 TRI) across the one-, two-, three-, and five-year trailing periods. It also outpaced its peers (funds ranked in the large and midcap category in the September 2024 CMFR) in the one-, two-, three-, five-, and seven-year trailing periods.

 

An investment of Rs 10,000 in the fund on January 17, 2018, would have grown to Rs 25,143 by January 16, 2025, reflecting an annualised return of 14.07 per cent. In comparison, the same investment in the category would have grown to Rs 24,993 (13.97 per cent annualised return), and in the benchmark, it would have grown to Rs 26,085 (14.67 per cent).

 

A systematic investment plan is a disciplined investment strategy offered by mutual funds, where investors contribute a fixed amount at regular intervals. A monthly investment of Rs 10,000 in the fund over the past 10 years, totalling Rs 12 lakh, would have grown to Rs 29.37 lakh (17.15 per cent annualised return), compared to Rs 28.43 lakh (16.54 per cent annualised return) in the benchmark, as of January 16, 2025.

 

Portfolio analysis

 

Over the past three years, the fund’s allocation was predominantly in largecap stocks (averaging 47.75 per cent of its overall portfolio). Allocations to midcap and smallcap stocks averaged 38.48 per cent and 9.58 per cent, respectively.

 

Non-equity assets accounted for balance 4.19 per cent. By comparison, the category average consisted of 48.42 per cent in largecap stocks, 37.11 per cent in midcap, and 9.32 per cent in smallcap stocks. The fund had a higher allocation to midcap and smallcap stocks than its peers.

 

The portfolio was diversified across 21 sectors, with financial services taking the lead, averaging 30.81 per cent of the portfolio, followed by healthcare (9.6 per cent), information technology (8.86 per cent), automotive (auto) and auto components (8.52 per cent), and fast-moving consumer goods (5.47 per cent).

 

During the period under review, the fund had exposure to 114 stocks. Key contributors to the portfolio included Oracle Financial Services Software, ITC, ICICI Bank, Mahindra & Mahindra, and Federal Bank.