UTI Large Cap Fund (Formerly UTI Mastershare Unit Scheme) is one of the top-picked funds in India to invest in 2024, as the fund has completed 11 years in the market.
An investor can choose a large cap mutual fund as UTI Large Cap fund direct growth. It was incorporated by Axis Mutual Funds in January 2013.
The fund is benchmarked against the S&P BSE 100 India TRI and holds the moderately low risk and expense ratio among the categories.
UTI Large Cap Fund has completed 11 years from inception and currently holds an AUM of Rs.12081.66 crore. The direct-growth plan has yielded 14.19% CAGR per year since its inception.
If you had invested 1 lakh in 2013, your fund would have grown to 3.4 lakh in 2024.
The minimum lump sum to start investments in this fund is Rs.100 and the minimum SIP (systematic investment plan) is Rs. 100 per month.
UTI Large Cap funds comprise 4 plans,
- Direct Growth Plan (We speak about this plan in this article)
- Regular Growth
- Direct – IDCW (Dividend Plan)
- Regular – IDCW (Dividend Plan)
Here we are sharing the complete details of this UTI Large Cap fund that could make any investor the right decision before investing.
UTI Large Cap Fund Direct Growth NAV:
The current NAV of Large Cap Fund direct growth is 255.14 (as of February 15, 2024).
The NAV of other plans of the same blue chip funds are,
- Regular Growth – 235.54
- IDCW – Regular Plan – 49.00
- IDCW – Direct Plan – 56.79
During the NFO period, all 4 plans had a NAV of Rs. 10. By the above distinction, you could find the Direct-Growth plan helps grow your funds at higher rates than other plans.
Regular plans are best if you need a professional to manage your fund.
UTI Large Cap Fund Direct Growth Performance:
UTI Large Cap Funds is an open-ended scheme that invests in large-cap companies (Top 100 companies of Indian share market per market capital).
This fund’s objective was to outperform the benchmark (S&P BSE 100 TRI) with comparatively low risk.
The fund has performed at a CAGR of 13.43% per annum since inception vs. 12.84% to S&P BSE 100 (benchmark). The category average has performed at a CAGR of 15.61%.
UTI Large Cap fund has underperformed its category average in 2 and 5 years of performance.
The fund has grown 26.93% higher than the Nifty 50 index since its inception (January 2013).
A short comparison of the fund’s performance with the benchmark and category average follows.
The fund has underperformed in 2 and 5 years returns with a CAGR of 10.24% and 15.63%, respectively.
The 2 years performance of the fund is 5.31% lower than the benchmark and 4.19% lower than the category average.
In the last 5 years of performance, the UTI Large Cap Fund Direct Growth has performed 1.92% lower than the benchmark and 0.67% lower than the category average.
Over the past year, this particular fund has shown lower performance compared to both its benchmark and category.
Fundamental Analysis Ratios:
- P/B – 4.27
- P/E – 28.74
UTI Large Cap Fund Portfolio:
The portfolio of this scheme includes equity (96.85%), Debt (0.54%), and Cash (2.61%).
Equity Holdings(96.85% of total portfolio):
The fund holds 51 company stocks and is subdivided into three types of classes (as per market capital),
- Large Cap Companies – 72.45%
- Mid Cap Companies – 9.63%
- Small Cap Companies – 0.71%
- Others – 14.06%
Debt Holdings(0.54% of total portfolio):
- T-Bills – 0.54%
Fund Portfolio across Industries:
- Financial – 27.8%
- Technology – 16.5%
- Services – 8.1%
- Energy – 9.2%
- Automobile – 8.8%
- Others – 29.7%
Top 20 Holdings:
- Infosys – 8.65%
- HDFC Bank – 8.23%
- ICICI Bank – 7.45%
- Reliance Industries – 6.16%
- Bharti Airtel – 4.12%
- Axis Bank – 3.88%
- Tata Consultancy Service – 3.65%
- Avenue Supermarts – 3.48%
- Kotak Mahindra Bank – 3.06%
- Bajaj Finance – 2.96%
- Net Current Assets – 2.62%
- Ultratech Cement – 2.52%
- Marauti Suzuki Cement – 2.35%
- ICICI Lombard General Insurance Company – 2.04%
- LTI Mindtree – 2.03%
- Godrej Consumer Products – 1.64%
- Sun Pharmaceutical Industries – 1.62%
- Tata Steel – 1.57%
- NTPC – 1.44%
- Info Edge India – 1.42%
The top 5 securities of this scheme cover 34.61% of the overall portfolio, and the Top 20 securities cover 76.84%
UTI Large Cap Fund Direct-Growth Risk Ratios:
While investing in mutual funds, you should know the methods of analyzing the risk ratio of any fund.
Standard deviation, Alpha, Beta, and Sharpe ratio are the parameters we usually calculate to predict the volatility and risk on returns.
Here are the details of the 3-year risk factors of the fund vs. category average.
- Standard Deviation – 13.7 vs. 13.92
- Alpha – (-) 2.03 vs 0.26
- Beta – 0.93 vs 0.94
- Sharpe Ratio – 0.66 vs 0.75
The fund has moderately low risk compared to the category average and benchmark.
UTI Large Cap Fund Expense Ratio:
The expense ratio plays an important role and impacts the performance of any mutual fund scheme.
The expense ratio or TER of UTI Large Cap Fund direct growth is 0.83%.
The TER of the category average is 0.49%. This is an important reason why the fund has underperformed both the category average and benchmark in the long term (5+ years).
Here is the expense ratio detail of the same fund with different plans,
- Regular – Growth – 1.73%
- Regular – IDCW – 1.75%
- Direct – IDCW – 0.83%
So, the best plan to choose from this scheme is direct growth. The fund has zero exit loads when redeemed post 1 year, and 1% if redeemed within 365 days.
UTI Large Cap Fund Manager:
Every mutual fund investor must know about the fund manager and their history.
Karthikraj Lakshmanan has been managing this fund since September 2022. Before joining UTI AMC, he worked with Baroda BNP Paribas AMC, ICICI Prudential AMC as a Senior Research Analyst, Goldman Sachs Services Pvt. Ltd. as a Business Analyst, and ICICI Bank as a Management Trainee.
Apart from this fund, he manages eight more schemes at UTI AMC.
Conclusion:
- Portfolios are well diversified within 51 equity securities and a few cash components.
- The expense ratio of this fund is lower than the category average.
- UTI Large Cap Fund is designed for investors with long-term goals like retirement planning, a dream home, a child’s higher education, and marriage.
- Performance since inception is low compared to the benchmark and category average.
- Maintain moderately low risk compared to the category average.
- This fund is one of India’s top picks in large-cap mutual funds.
- The fund manager has an amazing track record.