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.
Ankit Agarwal, Fund Manager of the scheme, said, ”Small businesses are often referred as the backbone of Indian economy, their presence is across the sectors engaged primarily in manufacturing, retailing, services, construction etc. In recent years, a wide spectrum of initiatives and opportunities have been set forth by the government to nurture 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 a 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.
