UTI Multi Cap Fund NFO: A Strategic Gateway to Diversified Equity Investing


UTI Mutual Fund has launched a new equity scheme — the UTI Multi Cap Fund, aimed at investors seeking broad-based exposure across the Indian equity markets. This New Fund Offer (NFO) is structured as an open-ended equity scheme that invests across large-cap, mid-cap, and small-cap segments, providing a well-balanced approach to equity investing.

Key Highlights of the UTI Multi Cap Fund NFO

  • NFO Duration: The fund is open for subscription from 29th April to 13th May.

  • Investment Objective: The scheme aims to achieve long-term capital growth by primarily investing in equity and equity-related instruments of companies spanning various market capitalizations. However, there is no certainty or assurance that the scheme’s investment objective will be realized.

  • Benchmark: The fund’s performance will be measured against the Nifty 500 Multicap 50:25:25 Total Return Index (TRI). This index reflects a diversified investment across all three market cap categories in the specified ratio.

  • Fund Manager: Mr Karthikraj Lakshmanan

  • Minimum Investment Amount: Investors can begin investing with as little as ₹1,000 during the NFO period, with additional investments in multiples of ₹1 thereafter.

  • Liquidity: Once the fund is open for continuous sale and repurchase, investors will have the flexibility to redeem their investments on any business day at the applicable Net Asset Value (NAV). Redemption proceeds are typically processed within three business days.

Investment Strategy and Objective

The core objective of the UTI Multi Cap Fund is to deliver long-term capital appreciation by constructing a portfolio that spans the entire equity market spectrum. The fund adopts a multi-cap allocation model, investing:

  • 50% in large-cap companies for stability and consistent returns,

  • 25% in mid-cap companies offering potential for higher growth,

  • 25% in small-cap companies that are more volatile but can generate substantial gains over time.

This distribution is in line with SEBI’s guidelines for multi-cap funds and allows the scheme to benefit from the strengths of each market cap segment.

Why This Fund Could Be a Smart Addition to Your Portfolio

  1. Balanced Risk-Return Profile:
    By investing across all market caps, the fund aims to reduce the concentration risk that can come from investing in just one category of stocks.

  2. Exposure to High-Growth Opportunities:
    Mid and small-cap stocks have historically demonstrated the potential for higher returns compared to large-cap stocks over the long term.

  3. Market Flexibility:
    The fund's design allows it to adapt to changing market dynamics, capturing emerging trends and opportunities across sectors.

  4. Professional Management:
    The scheme will be actively managed by experienced fund managers at UTI AMC, who will conduct in-depth research and rigorous analysis to select quality stocks.

How to Invest in the UTI Multi Cap Fund

Investors interested in participating in this NFO can apply through:

  • UTI Mutual Fund’s official website

  • Authorized mutual fund distributors

  • Online investment platforms and apps

  • Financial advisors and brokers

Once the NFO period ends and the scheme reopens for ongoing transactions, investors will also be able to set up SIPs (Systematic Investment Plans) and STPs (Systematic Transfer Plans) for regular investments.

Who Should Consider This Fund?

  • Investors looking for a diversified equity fund that reduces the risk of single market cap exposure

  • Those with a long-term investment horizon and the ability to withstand short-term volatility

  • Individuals seeking a professionally managed equity product with exposure to both established and emerging companies

Final Thoughts

The UTI Multi Cap Fund offers an attractive investment proposition for those aiming to diversify their equity holdings through a single fund. With its structured asset allocation and active management strategy, the fund has the potential to harness growth opportunities across the market while managing associated risks.

Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. This article is for informational purposes only and does not constitute financial advice. Consult with a registered financial advisor to understand if this product aligns with your financial goals.


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