UTI Mutual Fund launches new Focused Equity scheme for concentrated bets

MUMBAI: UTI Mutual Fund on Wednesday launched a Focused Equity fund that will create a concentrated portfolio to benefit from active stock picking in the market.

The new fund offer for the scheme opened on Wednesday and will close on August 18.

The fund aims to put money on 30 stocks across market capitalization with the objective of generating long-term capital appreciation.

“Focused investing is all about high conviction and our philosophy has two dimensions to generate portfolio alpha. The first is to hand-pick a select set of companies from the larger universe by relying on our ScoreAlpha investment philosophy aided by rich experience in research and fund management to separate the wheat from the chaff. Second is to build the portfolio to demonstrate the conviction by building significant portfolio positions in each company, which may accentuate the portfolio outcome,” said Sudhanshu Asthana, fund manager at UTI MF.

The fund aims to buy companies with long-term sustainable growth trajectory, transformation opportunities and undervalued cyclical opportunities.

UTI Focused Equity fund will pursue bottom-up approach in identifying stocks and will follow a blend strategy of investing in both growth and value stocks with a tilt towards growth stock, the mutual fund said.