UTI Large & Mid Cap Fund follows a diversified equity investment strategy focused on identifying sound businesses that are available at relatively attractive valuations.
The fund combines exposure to large-cap and mid-cap companies while also maintaining exposure to select small-cap opportunities. According to the SEBI categorisation framework for mutual funds, large and mid-cap funds are required to invest a minimum of 35% each in large-cap and mid-cap equity and equity-related instruments.
The approach provides exposure to established large-cap businesses while allowing the portfolio to participate in potential growth opportunities across mid- and small-cap companies.
A Focus on Value Investing
At the core of the fund’s strategy is a value-oriented investment philosophy.
Value investing involves identifying companies that are trading below their perceived intrinsic value. Market sentiment, short-term news flows and changing expectations can sometimes result in businesses being valued below their historical levels or relative to their peers.
The fund seeks to identify such opportunities while maintaining a focus on the concept of a margin of safety.
By investing at relatively lower valuations, the strategy seeks to provide a degree of valuation cushion if business performance takes longer than expected to improve. The investment philosophy also recognises business cyclicality and the possibility of mean reversion in both business fundamentals and valuations.
Combining Top-Down and Bottom-Up Analysis
The fund follows both top-down and bottom-up approaches to stock selection.
At the sector level, the strategy looks for sectors available at valuations below their historical averages while having reasonable prospects.
At the company level, the focus is on identifying businesses with sound fundamentals, reasonable relative valuations, healthy historical track records and potential for future growth.
The strategy considers the possibility that individual companies can move through their own valuation cycles because of macroeconomic conditions or company-specific factors. The fund seeks to identify potential inefficiencies arising during these cycles.
Growth-oriented companies can also form part of the portfolio when their valuations are considered reasonable.
Three Key Investment Tenets
The fund’s investment strategy is built around three broad principles:
Relative valuation:
The fund focuses on companies whose valuations are relatively attractive compared with their historical valuations or those of their peers.
Growth opportunities at reasonable valuations:
Companies offering growth potential may be considered when their valuations are within the investment team’s comfort zone.
Mean reversion:
The strategy looks for businesses where profitability and valuations could potentially improve as business and economic cycles evolve.
The approach can also identify opportunities among small-cap companies where growth potential and value may coexist, particularly in businesses that are less widely discovered by the market.
Fund Portfolio and AUM
UTI Large & Mid Cap Fund was launched in 2009.
According to the information provided, the fund had an AUM of more than ₹6,500 crore as of August 31, 2026.
As of the same date, approximately 49% of the portfolio was invested in large-cap companies and 36% in mid-cap companies, with the remaining allocation in small-cap companies.
The fund’s top holdings included 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.
Together, these holdings accounted for approximately 32% of the portfolio as of August 31, 2026.
Positioning for Long-Term Equity Exposure
UTI Large & Mid Cap Fund is positioned for investors seeking exposure to a combination of large- and mid-cap stocks, along with a relative-value investment approach.
The strategy combines established businesses with opportunities across mid- and small-cap segments, while maintaining a focus on valuations and long-term business fundamentals.
Investors should review the latest scheme documents, portfolio disclosures, costs, risks and performance information before making any investment decision. Mutual fund investments are subject to market risks, and investors should consider whether the scheme is appropriate for their individual financial circumstances and risk tolerance.
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