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New Fund Offer: NFO of UTI Small Cap Fund opens these days – Check whom it suits


The scheme will invest in a minimum of 65 per cent of the total assets in equity and equity-connected instruments of compact-cap providers.

UTI Mutual Fund has launched an open-ended equity scheme which will predominantly invest in compact-cap stocks – ‘UTI Small Cap Fund’. The investment objective of the scheme is to create lengthy term capital appreciation by investing predominantly in equity and equity-connected securities of compact-cap providers. However, there can be no assurance or assure that the investment objective of the scheme would be accomplished. 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 scheme will invest in a minimum of 65 per cent of the total assets in equity and equity-connected instruments of compact-cap providers and up to 35 per cent in Debt and Money Market instruments. The danger profile of the scheme is Moderately High and suits investors who are prepared to absorb a somewhat greater quantity of quick term volatility.



The minimum initial investment is Rs. 5,000 and in multiples of Re. 1 thereafter with no upper limit. The scheme delivers Regular and Direct Plan and each the plans offer you Growth and Dividend Payment Option to the investors. The Benchmark Index of the scheme is Nifty Small Cap 250 TRI and Ankit Agarwal is the Fund Manager of the scheme.



Compared to the massive-cap and mid-cap stocks, the volatility is higher in the compact-cap stocks. The compact-cap mutual funds ordinarily invest in compact size providers that have not been extensively found by the market place but may have the prospective to be a leader in future.

Generally, a Bottom-up method is viewed as even though investing in compact caps aimed at identifying companies that have a lengthy term prospective to develop into a massive-sized firm. The liquidity in massive-cap stocks is greater compared to other stocks as they are preferred by large investors, monetary institutions, hedge funds and HNIs.

The danger is greater in compact-cap stocks as stock costs of compact-cap firms can show greater volatility than other individuals, specially throughout downturns. One ought to very carefully assess one’s danger profile and even seek advice from one’s monetary advisor prior to investing in Small-Cap mutual fund schemes.



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