UTI refrained from launching its multicap fund when small and midcaps were racing ahead of fundamentals over ’23 and ’24. With valuations now coming off post correction, UTI has launched its multicap fund with an intention to maintain allocation across large, mid and small caps broadly in the ratio of 40:30:30.
The portfolio will have a blend of quality and value styles, will be more bottom-up rather than benchmark oriented and will be well diversified across sectors.
Earnings growth numbers are expected to come in low double digits for FY26. Large caps are now in fair value zone, small caps are approaching their fair value zone while midcaps still are a bit expensive.
Karthikraj likes banks at these valuations and is also positive on select consumer discretionary and FMCG stocks.
In healthcare, her prefers heathcare service providers and domestic focused pharma companies.
While IT stocks could be vulnerable to a US slowdown, the bad news could well be in the price now, after the recent correction.
He is wary about the auto sector which is facing some domestic headwinds as well as is exposed to tariff pressures.