UTI Small Cap Fund

UTI Mutual Fund

NFO Start Date

December 2, 2020

NFO Close Date

December 16, 2020

Scheme Type

Open Ended

Category

Equity - Small Cap Fund

Object of Scheme

The objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities of small cap companies. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved

Suitability

This scheme is suitable for investors with moderately high-risk appetite who are –

Interested in long term capital appreciation & income.
Interested in investing in an equity scheme which invests in undervalued securities.

Asset Allocation Pattern

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
Equity & Equity related instruments65100Medium to High
Debt, Securitized debt & Money market instruments035Low to Medium
Units that are issued by REITs and INVITs010Moderate to High

Riskometer

Moderately High

Benchmark

Nifty Small Cap 250 TRI

Exit Load

Less than 1 year 1% exit load

Minimum Investment

Minimum amount of investment under all plans and options The minimum investment amount is ` 5000/- and in multiples of Re 1/- thereafter with no upper limit. Additional Purchase Amount ` 1000/- and in the multiple of Re.1/- without any upper limit.

Fund Manager

Mr. Ankit Agarwal is the dedicated Fund Manager of UTI Small Cap Fund

Qualifications :  B.Tech, PGDM (General Management), IIM-Bangalore

He joined UTI in August 2019 as Fund Manager – Equity with Dept. of Fund Management. He has more than 13 years of experience. Prior to joining UTI he was working with Lehman Brothers and Barclays Wealth. He had been associated with Centrum Broking Ltd. in the capacity of Senior Vice President.

Mr. Kamal Gada is the dedicated Fund Manager for making overseas investments

Qualifications : B.Com, CA, CS, CFA 

Mr. Kamal Gada is Senior Associate Vice President. He is a CFA Charter holder from CFA Institute. He has completed CA from ICAI. He graduated in Bachelor of Commerce in 2003 from Mumbai University. He began his career with BPCL as Senior Accounts Officer in 2004. Kamal joined UTI AMC in 2008 as Research Analyst. Presently he has been designated as Fund Manager for Overseas Investments. He has over 12 years of experience in Equity Research.

Risk Factor

 Key risks associated to investing in small-cap funds

Relative Volatility:

Small-cap stocks are more susceptible to volatility due to their size. Usually, its price fluctuation in the short-term can be way higher than its peers in mid and large segment. While, downward market movement can be adverse for a small-cap fund, in upward market trend such funds may give the highest returns as compared to large-cap or mid-cap funds.

Liquidity: A stock’s liquidity generally refers to how quickly shares of a stock can be bought or sold without substantially impacting the stock price. Given that small cap companies tend to issue fewer shares than larger companies, are often have less liquidity and are also more difficult to exit a position at the market price.

Impact cost: It is the cost that a buyer or seller of stocks incurs while executing a transaction due to the prevailing liquidity condition on the counter. In other words, this is a cost that the buyers/sellers incur due to lack of market liquidity. Impact cost does vary for different transaction sizes and are dynamic in nature and depends on the outstanding orders. Since, small-caps are less liquid, relative impact cost is higher for the stocks.

Investment Strategies

The scheme shall predominantly invest in equity and equity related securities of small cap companies, considering the factors such as, but not limited to, business fundamentals, financial strength, sustainable cash flows, earnings growth potential, attractiveness of valuation, scalability of business, management quality etc.

The fund primarily relies on bottom-up stock picking. However, The scheme use the top-down approach from a risk management perspective

How should Invest in UTI Small Cap Fund?

Risk Allocation : Investors looking to add a high risk strategy to balance an overall conservative portfolio construct

Return Expection : Investors seeking higher returns’ potential relative to other diversified equity funds and willing to ride the underlying higher portfolio volatility and risks

Investment Route : Investors looking for allocation either lump sum or staggered route (SIP*/STP)

Time Horizon : Investors looking for investments over medium to long-term horizon