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With the fluctuations in the stock market due to various factors, the mid-cap companies are affected the most. This is why many advisors claim that investing in the mid-cap funds may not be a better option for low-risk investors. If you are among those and wish to know the actuality of the mid-cap stocks, then you are at the right place. UTI Midcap Fund is among the best-performing mid-cap mutual fund schemes in India which is focused on providing growth and stability to the investors. But many investors believe that being mid-cap fund it is highly risky and less effective. Here we will come to know the facts about this scheme.
Before understanding why UTI Mid Cap Fund is beneficial for you, it is essential to know what mid-cap funds are and what they provide to the investors. The mid-cap fund is a type of equity mutual fund which invests in the medium-sized companies. These are the companies which have yet not reached their peak level but are in the growing stage and get too much affected by the market moves. UTI Mid Cap Fund (Dividend) is a plan that has an asset allocation of the equity stocks and shares of the mid-cap companies which provide high growth opportunities to the investors. Let’s take a quick view of the features of UTI Mid Cap to understand whether it is beneficial for the investors or not:
The primary objective of the fund is to provide capital appreciation to the investors by investing predominantly in the mid-cap stocks.
It is an open-ended scheme with a dividend option plan according to which it tends to provide regular income in the form of a dividend.
The asset size of the scheme as on April 30, 2017, amounted to Rs.3,986 Crore which shows the market possession of the fund.
The benchmark against which its performance is measured is NIFTY MIDCAP 100.
The average market capitalisation amounted to Rs.10,799.68 Crore which depicts the holding of the fund in the market.
The asset of the fund is being bifurcated in the equity, debt and money market instruments. 97.3% of the funds at present are being put in the equity securities while the remaining are being diversified in debt and money market funds.
The asset allocation of the funds in a different sector in UTI Mid Cap Fund ensures wide diversification in order to minimise the risk factors and increase returns. The sectors include automobile, financial, construction, chemicals, services, FMCG, engineering, textile, and many more.
The top holdings of UTI Midcap Fund include M&M Financial Services, Bharat Forge, Escorts, Container Corporation, Tata Chemicals, Power Finance Corporation, and so on.
Accordingly, we can understand that UTI Midcap Fund has the potential to generate expected returns to the investors on time. With great market possession and investments in the growing entities ensure the high growth of the mid cap funds. Buying the scheme in this category would definitely be worthwhile for the investors. You must buy the UTI Midcap Fund online from portals like MySIPonline and make your future financially secure.