Investment Philosophy of the fund is to own companies that would endure market conditions and produce consistently above average performance and returns. The stocks will be judged on the basis of three parameters : Profitability, Earnings Quality and Capital Efficiency
A bluechip stock does not necessarily mean a large cap stock. Hence the word "Bluechip Stock" has been redefined as per the current investment dynamics.
Why invest in UTI Bluechip Flexicap Fund?
- Continuing our emphasis on "quality" of stocks and "quality of investing"
- "Quality" companies performs across market cycles
- "Quality" companies mitigate drawdown
- "Quality" companies rebound faster based on the strong fundamentals of balance sheets & business models
- "Quality" companies are across market caps and are not restricted only to large caps
A redefined 'Blue Chip Stock' will have the following attributes:
1) Profitability & Earnings:
- Strong track record of earnings growth over last 5-10 years with stability in margins
- Ability to compound earnings at better than the market over the next 5-10 years with strong predictability
- Positive operating cash flows
2) Capital Efficiency
- Average of last 10 year RoCEs >15% (non finance)
- Average of last 10 year RoAs > 1% (banks & NBFCs)
- Ability to sustain the above RoCEs & RoAs over next 5-10 years with low volatility
The companies should also have Seasoned Management and a Tried & Tested business model. The fund will be agnostic to market capitalization (Flexicap).
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For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
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