UTI Large & Mid Cap Fund offers a diversified investment portfolio and aims to invest in sound companies that provide a margin of safety by trading at relatively cheaper valuations compared to their historical valuations or peers.
According to the SEBI categorisation of mutual funds, large and mid cap funds invest a minimum of 35% each in the equity and equity-related instruments of large-cap and mid-cap companies. The fund aims to provide stability through a bias towards large-cap companies while offering higher growth potential through investments in mid-cap and small-cap companies.
Value investing is a strategy that involves selecting stocks that are trading below their intrinsic value. Markets often overreact to short-term news flows or sentiments, creating opportunities for value investors to buy stocks below their intrinsic value. Purchasing stocks below their intrinsic value provides a margin of safety, which is a distinguishing feature of value investing.
By investing at lower valuations, value investors increase the probability of generating returns or limiting losses if a business does not perform as expected or takes longer to realise its potential. Value investors emphasise margin of safety over growth and embrace cyclicality, as well as the potential for mean reversion in business fundamentals and valuations. The value investor benefits when a stock trades closer to its intrinsic value, capturing improvements in business fundamentals and valuations.
The fund follows a top-down approach to identify sectors available at below-average valuations with reasonable growth prospects. It then adopts a bottom-up approach to select sound businesses with reasonable relative valuations, a healthy track record, and future growth potential.
The core belief of the fund is that companies go through their own valuation cycles, which may vary due to macroeconomic cycles or company-specific factors. The objective is to capture inefficiencies within these cycles. The fund also considers growth-oriented companies when valuations remain within a comfortable range.
The investment strategy of the fund is built around three key principles: relative valuation versus historical levels or peers, growth opportunities at reasonable valuations, and mean reversion.
The fund focuses on quality companies whose valuations are lower than their historical averages or those of comparable peers, thereby providing a margin of safety. It also seeks growth-oriented stocks trading at reasonable valuations. In this regard, small-cap companies can offer a combination of growth and value, as they are often less discovered by the market and quality businesses may still be available at attractive valuations.
The strategy also aims to identify undervalued businesses that may benefit from a recovery in profitability and valuation as market and business cycles evolve.
UTI Large & Mid Cap Fund was launched in 2009. The fund had assets under management (AUM) of over ₹6,500 crore as of August 31, 2026. As of that date, approximately 49% of the portfolio was invested in large-cap stocks, 36% in mid-cap stocks, and the remaining portion in small-cap stocks.
The scheme’s top holdings include HDFC Bank Ltd., ICICI Bank Ltd., Reliance Industries Ltd., State Bank of India, Infosys Ltd., Larsen & Toubro Ltd., Aurobindo Pharma Ltd., ITC Ltd., Aditya Birla Capital Ltd., and Bharti Airtel Ltd., collectively accounting for around 32% of the portfolio.
UTI Large & Mid Cap Fund is designed for investors seeking exposure to a portfolio comprising both large-cap and mid-cap stocks, with a bias towards a relative value investment style. The fund is suitable for investors looking to build a core equity portfolio for long-term wealth creation.
