THEBUSINESSBYTES
BUREAU
BHUBANESWAR,
JANUARY 21, 2026
In a market landscape often driven by
short-term noise and shifting sentiments, disciplined investing anchored in
value and fundamentals continues to stand the test of time. The UTI Large &
Mid Cap Fund positions itself firmly within this philosophy, offering investors
an opportunity to participate in a diversified portfolio of fundamentally
strong businesses that are available at relatively attractive valuations.
Structured in line with SEBI’s large
and mid cap fund categorisation, the scheme maintains a minimum allocation of
35 per cent each to large cap and mid cap equities. This balance allows the
fund to combine the inherent stability and resilience of large,
well-established companies with the growth potential that mid and select small
cap businesses can deliver over a market cycle. The result is a portfolio
designed to navigate volatility while remaining well-positioned for long-term
capital appreciation.
At the heart of the fund’s approach
lies value investing — a strategy rooted in buying quality businesses below
their intrinsic worth. Markets often overreact to short-term developments,
creating valuation mismatches between price and long-term business potential.
The fund seeks to capitalise on such inefficiencies by investing in companies
that offer a margin of safety, thereby improving the probability of favourable
outcomes and cushioning downside risks. This emphasis on margin of safety,
rather than chasing momentum, distinguishes the fund’s investment philosophy.
The investment process blends top-down
and bottom-up analysis. At the sector level, the fund identifies areas of the
market that are trading below their long-term average valuations but still
offer reasonable growth prospects. At the stock level, it focuses on sound
businesses with healthy track records, robust fundamentals and valuations that
are attractive relative to their own history or peers. The fund also recognises
that companies move through distinct valuation cycles influenced by
macroeconomic conditions and company-specific factors, and it aims to capture
opportunities arising from these cyclical dislocations. While value remains
central, growth-oriented companies are also considered when valuations fall
within a comfort zone.
Three guiding principles underpin the
strategy: relative valuation, growth at reasonable prices and mean reversion.
By investing in quality companies whose valuations are depressed compared to
historical norms or peer benchmarks, the fund seeks to build a portfolio with
built-in resilience. It also selectively taps into growth opportunities,
including in the small cap space, where high-quality but under-researched
companies can sometimes be found at reasonable valuations. Over time, as
business fundamentals and valuations normalise, the potential for mean reversion
becomes a key driver of returns.
Launched in 2009, the UTI Large &
Mid Cap Fund has evolved into a sizeable offering with assets under management
of over ₹5,600 crore as of December 31, 2025.
The portfolio reflects a calibrated allocation, with around 49 per cent
invested in large caps, 38 per cent in mid caps and the balance in small caps.
Its top holdings include established leaders such as HDFC Bank, Infosys, ICICI
Bank, Reliance Industries, Vedanta, Wipro, ITC, Federal Bank, Indus Towers and
Larsen & Toubro, together accounting for roughly 30 per cent of the
portfolio — underscoring a focus on quality and
Designed for investors seeking to
build a core equity allocation, the fund is well-suited for those with a
long-term investment horizon who value a disciplined, relative value-oriented
approach. By combining the stability of large caps with the growth potential of
mid and select small caps, and by anchoring decisions in valuation comfort and
business fundamentals, the UTI Large & Mid Cap Fund aims to help investors
benefit from opportunities across market cycles while pursuing sustainable
wealth creation over time.
