UTI Large and Midcap Fund: One of the most consistent large and midcap funds

The market bounced back after President Trump announced ceasefire in the Israel Iran War. Crude prices which rose sharply after hostilities broke out between Israel and Iran tumbled. FII flows to Indian equities in June 2025 continued to be robust despite geopolitical risks. RBI's 50 bps repo rate cut in June can boost spending and economic growth. The sharp correction over the past few months have moderated valuations from their peak levels (see the graphic below) and provide attractive investment opportunities. While lingering geopolitical and global trade uncertainties are risk factors, India's favourable macro environment and resilient economic growth make Indian equities attractive for long term investors. In current market conditions large and midcap funds can provide suitable investment opportunities for long term investors.

In this article, we will review UTI Large and Midcap Fund, one of the most consistently performing funds in its category.

Source: National Stock Exchange

About UTI Large and Midcap Fund

UTI Large and Midcap Fund (formerly known as UTI Core Equity Fund) invests primarily in large cap (top 100 companies by market capitalization) and midcap (101^st to 250^th companies by market capitalization) stocks. As per SEBI's mandate, large and midcap funds must invest minimum 35% each in large and midcap stocks. Large cap stocks endeavour to provide stability & liquidity and mid cap stocks can potentially generate higher returns to the portfolio. The fund made a strong turnaround in performance from 2021. It has consistently secured a place in the top quartiles for the last 5 consecutive years (see the graphic below).

Source: Advisorkhoj Research, as on 23^rd June 2025

Strong performance consistency

The graphic below shows the quarterly returns of UTI Large and Midcap Fund versus its benchmark index, Nifty Large Midcap 250 TRI and the category average for the last 12 quarters. You can see that fund has been in the top 2 quartiles in 10 out of last 12 quarters. This shows very strong performance consistency. Investors often select funds based on recent returns; however, consistency is a much more important performance parameters

Source: Advisorkhoj Research, as on 31^st March 2025

Consistently outperformed its benchmark index

The chart below shows the 3 year rolling returns of UTI Large and Midcap Fund versus its benchmark index since 1^st January 2020. You can see that the fund has consistently outperformed its benchmark index. The median 3 year rolling returns of the fund (23.45%) was higher than median 3 year rolling returns of the benchmark. Consistent alpha generation across different market conditions is one of the hallmarks of strong fund manager performance.

Source: Advisorkhoj Rolling Returns, as on 23^rd June 2025

Limited downside risks versus the benchmark index

The chart below shows the drawdowns of UTI Large and Midcap Fund versus its benchmark index (Nifty Large Midcap 250 TRI). You can see that the fund experienced smaller drawdowns compared to the benchmark, thereby limiting downside risks for its investors.

Source: Advisorkhoj Research, as on 23^rd June 2025

Lower volatility compared to peers

Standard deviation is a measure of volatility. We looked at the annualized standard deviations of last 36 monthly returns of all large and midcap cap funds that have completed 3 years. The standard deviation of UTI Large and Midcap Fund circled in red is lower than most of its peers.

Source: Advisorkhoj Research, as on 31^st May 2025

Superior risk adjusted returns compared to peers

Sharpe Ratio is a measure of risk adjusted returns of a mutual fund scheme. We compared the Sharpe Ratios of all large and midcap cap funds that have completed 3 years. The Sharpe ratio of UTI Large and Midcap Fund circled in red is higher than most of its peers.

Source: Advisorkhoj Research, Risk free rate is Overnight MIBOR as on 31^st May 2025

Wealth creation track record

The chart below shows the growth of Rs 10,000 monthly SIP since the inception of UTI Large and Midcap Fund. With a cumulative investment of Rs 23.9 lakhs, you could have accumulated a corpus of Rs 1.13 crores (as on 23^rd June 2025).

Source: Advisorkhoj Research, as on 23^rd June 2025

Market cap allocations in line with peer average

The chart below shows the market cap allocations of UTI Large and Midcap Fund versus the category average allocations. The market cap allocations of the fund are more or less in line with peer average. In other words, the fund manager is not taking higher risks to deliver higher returns.

Source: UTI MF, Advisorkhoj Research, as on 31^st May 2025

Current portfolio positioning

The investment strategy of the Fund is built around three tenets: Relative valuation versus history or peer, growth opportunities at reasonable valuations for picking mid and small cap stocks and mean reversion opportunities.

Source: UTI MF, Advisorkhoj Research, as on 31^st May 2025

Who should invest in UTI Large and Midcap Fund?

• Investors looking to build their core equity portfolio for long-term wealth creation.


• Investors should have minimum 5-year investment horizon for this fund.


• Investors should have high risk-taking appetite for investing in this fund.


• Investors can invest in this fund through Systematic Investment Plan (SIP) also.

Investors should consult with their financial advisor or mutual fund distributor if UTI Large and Midcap Fund is suitable for their investment needs.