Introducing the UTI Small Cap Fund
Did you know there is a great opportunity to earn higher returns for your portfolio? Yes, here is a good pick to start your investments with. The UTI Small Cap Fund is here to deliver high returns and help you create long-term wealth. But wait, Do you know when this scheme was launched?
Yes, this small cap mutual fund was started on 1 December 2020, and since then, it has given a 26.84% CAGR. Sounds impressive, right? It is.
It stands out for its robust track record. Moreover, it focuses on untapped growth potential in the small-cap space. This article explores the fund in detail. In addition, it highlights its features and benefits. Likewise, you will see how it can simplify your investment journey.
Let’s start the analysis with learning a short brief on the small cap funds.
What are Small Cap Mutual Funds?
Small-cap funds invest in companies with market capitalisations less than the top 250. These businesses normally have high growth prospects. However, it entails larger risks because of their size and market fluctuations. Small-capitalisation funds can be very rewarding. If you are someone with a long investment time horizon. These are relatively high-risk appetites.
Now that’s out of the way, you will see the details of this scheme launched by the UTI Mutual Fund house.
Overview of UTI Mutual Fund
In simple words, it is a scheme offered by the reputed asset management company, the UTI Mutual Fund. This fundfocuses on investing in small-cap companies. Mostly, having high growth potential and solid fundamentals. It is designed for investors looking to diversify their portfolios. Moreover, it gives exposure to emerging businesses that could become tomorrow’s leaders.
- Fund Type: Equity, Small-Cap
- Investment Objective: To generate long-term capital appreciation. It invests in equity and equity-related instruments of small-cap companies.
- Launch Date: 01.12.2020
- Benchmark: Nifty Small Cap 250 Index
Now, moving along with a deep discussion on the key characteristics of this small cap fund.
Key Features of the UTI Small Cap Mutual Fund
The following are some key aspects to gain from investing in this small cap stock:
- Focus on Small-Cap Companies
The fund primarily invests in small-cap companies. It offers investors the benefit from the rapid growth of emerging businesses.
- Active Management
A team of experienced fund managers actively manages the portfolio. This ensures that investments align with the fund’s objectives.
- Diversified Portfolio
The fund spreads its investments across various sectors and companies. It reduces the overall risk associated with individual stocks.
- Long-Term Wealth Creation
It targets high-growth companies. Likewise, aims to deliver substantial returns over the long term.
- Regular Monitoring
The fund undergoes regular performance reviews. Moreover, it timely adjusts the portfolio based on market conditions and emerging opportunities.
The next stop is at the merits of this mutual funds scheme.
What are the Merits of Investing in UTI Small Cap Fund?
Here are some advantages of including UTI Small Cap Fund in your portfolio:
- High Growth Potential
When the market conditions are right, small company shares produce higher returns. They offer higher returns with higher risk than blue-chip companies for investors.
- Professional Fund Management
Fixed-income investors benefit from professional UTI fund managers. They are experienced and successful in their studying process before finally buying stock.
- Portfolio Diversification
Small-cap funds give a variety of portfolios, bringing diversification to your financial portfolio. This will lead to lower general risk and increased returns.
- Cost-Effective Investment
The capital required to invest is not very large. This makes the investment affordable to several investors. SIP stands for Systematic Investment Plan. The fund is good for Saving-Investment-Planning SIPs. Here the investor invests an amount at regular intervals. It keeps the risk of market timing and brings discipline into the investments.
Fund Manager of UTI Small Cap Stock
It’s time to introduce the mastermind, Mr Nitin Jain. He is an experienced asset who has worked for the financial company for many years. He has a Bachelor of Engineering degree and a Master of Management Studies (MMS). He has a combination of analytical and strategic skills in fund management. He started his career at SBI Mutual Fund and IDBI Capital Market Services Ltd. Furthermore, doing equity research and portfolio management before joining UTI Mutual Fund. A deep understanding of growth sectors. His expertise lies small-cap segment. This makes him a valuable asset in the position of guiding the fund to stable long-term returns.
The next heading will cover the suitability of this scheme for you.
Who Should Invest in UTI Small Cap Fund?
The UTI Small Cap MF is suitable for the following investors:
- Investors with a long-term horizon of at least 5-7 years.
- Individuals seeking high returns and are willing to accept higher risks.
- Those looking to diversify their portfoliowith exposure to small-cap companies.
Let’s move further with learning the risks connected with this particular fund.
Is UTI Small Cap Fund Risky?
The UTI Small Cap Fund has strong growth potential. All in all, the investors should be aware of the following risks:
- Market Volatility
Small-cap stocks are also volatile. This strategy is suited for stocks that are more affected by market variation.
- Liquidity Issues
Actually, since small-cap stocks usually have lower liquidity. There may be issues with the trading volume of shares.
- Business Risks
Small companies may experience poor performance. This can be due to their operational and financial problems. To avoid these risks, investors must have a long-term investment plan of 5-7 years. This will help you diversify your investments.
Last but not least, it’s time to wrap up the analysis with vital points.
Summary
In short, the small cap category is the only market cap that offers you the chance to make high returns. Why not take a little risk and seize this opportunity to create wealth? If you are still hesitant, opt for the SIP route. This way, you start small and can adjust the amount according to your affordability.
You know what life is like without a little bit of danger, right? Moreover, as discussed in the above post, this could be your perfect match. This small cap fund has ticked all the boxes and has passed with flying colours. Wake up, and don’t let this amazing investment opportunity slide by you. Hurry and take your portfolio to a whole other level of high returns.
