UTI Mid Cap Fund - Key Points to be Considered While Investing

UTI Mutual Fund is the oldest fund house of India that has contributed in attracting the attention of people towards investment in mutual fund. Although this AMC once enjoyed monopoly, today it has a number of competing asset management companies. But, no matter what, UTI MF has been successful in maintaining its schemes in the list of the top performing funds. UTI Mid Cap Fund is one such scheme that has made it to this list. Let’s read why you should invest in this scheme.

How Are the Assets of UTI Mid-Cap Fund Allocated?

The assets under management as on August 31st, 2018 is Rs. 4028 crore out of which it has invested 99.24% of the total assets in the equity and equity related instruments.   

In the above pie chart, it can be seen that the assets of this scheme have been invested majorly in the mid cap stocks followed by large-cap and small-cap stocks. Keeping in mind the current market phase, these stocks are likely to perform well with time. Therefore, it is a good equity scheme to invest in right now for a long-term.

Here, under this scheme, the approach followed is the bottom-up which means that the investment is made in those companies that are good performers but are currently going through a low phase. This will help investors in getting the benefit in the form of returns once it starts to perform well again.

How Is UTI MidCap Fund Growth Performing?

In the above table, it can be seen that this scheme has yielded results better than both its benchmark NIFTY Midcap 150 TRI and its category in the past  five-year returns. This shows that this scheme provides reasonable returns in the long-term.

What Are the Risks Involved in UTI Midcap Fund?

The standard deviation of this scheme is 16.30 which is more than its category (15.99) but less than its benchmark’s SD which is 16.94 as on August 31st, 2018. Beta of the scheme is 0.92 which is more than its category’s Beta (0.90). This shows that this scheme is likely to fluctuate more than its category. 

The Sharpe ratio of this scheme is 0.30 as on August 31st, 2018 which is less than both its benchmark and category’s ratio. This shows that the returns generated with the per unit risk taken of this scheme are comparatively less. The risk measurements mentioned here though doesn’t seem to be that good but the same can be avoided by investing for a long-term. 

Investment Details

UTI Mid Cap Fund NAV as on September 12th, 2018 was Rs. 103.1785. The minimum investment amount with which you may invest in this scheme is Rs. 5000. Please note that if you redeem the units within one year of investment, then you will be liable to pay 1% as exit load.

You may invest in UTI Mid Cap Fund Growth online as well as through offline mode. To invest online, log on to MySIPonline, the leading platform that has a really simplified investment procedure which is convenient for any user and time-saving as well. To clarify any confusion that you might be having, feel free to contact the experts here anytime without worrying about the additional charges to be incurred as it is absolutely free.

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