UTI Mutual Fund launches an open-ended equity scheme which will predominantly invest in small cap stocks – ‘UTI Small Cap Fund’. The New Fund Offer opens on December 02, 2020 and closes on December 16, 2020. The scheme will re-open for subscription and redemption for an ongoing basis from December 23,2020.
The investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities of small cap companies. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
Mr. Ankit Agarwal is the Fund Manager of the scheme.
Mr Ankit said, ”Small businesses are often referred as backbone of Indian economy, their presence is across the sectors engaged primarily in manufacturing, retailing, services, construction etc. In the recent years, a wide spectrum of initiatives and opportunities have been set forth by the government to nurture the small businesses. Therefore, in the long run the share of small companies to economic growth is likely to expand.”
“UTI Small Cap Fund will endeavour to invest in companies that have scalable business models, are run by seasoned management and aims to generate high return on invested capital. We have a 360 degree risk assessment framework to mitigate the underlying risks and is aligned to gain from small cap and select midcap companies having growth opportunities.” he added
Salient features of UTI Small Cap Fund
- Eligible Investors
The scheme is open to resident individuals, non-resident Indians, Institutions, Banks, eligible trusts, Financial Institutions, Foreign Portfolio Investor (FPI) etc.
- New Fund Offer Price
During the NFO period, the units of the scheme will be sold at face value i.e.
Rs. 10/- per unit.
- Asset Allocation
| Instruments | Indicative Allocation (% of total assets) | Risk Profile | |
| Minimum (%) | Maximum (%) | ||
| Equity and equity related instruments (minimum 65% of the total assets would be in equity and equity related instruments of small cap companies) | 65 | 100 | Medium to High |
| Debt and Money Market instruments including securitized debt* | 0 | 35 | Low to Medium |
| Units issued by REITs & InvITs | 0 | 10 | Medium to High |
| *The fund may invest up to 50% of its debt portfolio in securitized debt. |
- Minimum Application Amount
Minimum initial investment is Rs. 5,000/- and in multiples of Re. 1/- thereafter with no upper limit.
Additional Purchase Amount Rs. 1,000/- and in multiples of Re. 1/- thereafter with no upper limit.
- Plans and Options Available
The scheme offers Regular and Direct Plan
Both the plans offer Growth and Dividend Payment Option
- Special Products/Facilities Offered
(i) Systematic Investment Plan (SIP)
(a) Step up facility
(b) Any Day SIP
(c) Micro SIP
(ii) Systematic Withdrawal Plan (SWP)
(iii) Dividend Transfer Plan (DTP)
(iv) Systematic Transfer Investment Plan (STRIP)
- Load Structure
- Entry Load
Not applicable as per SEBI guidelines
- Exit Load
| Period of Holding | Exit Load (As % of NAV) |
| Less than One year | 1% |
| Greater than or equal to one year | Nil |
- Benchmark Index
Nifty Small Cap 250 TRI
Product Label:
UTI Small Cap Fund
(Small Cap Fund – An open ended equity scheme predominantly investing in small cap stocks)
| Risk-o-meter |
This product is suitable for investors who are seeking*:
- Long term capital appreciation
- Investment predominantly in equity and equity related securities of small cap companies
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
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