UTI Large & Mid Cap Fund Regular Plan Payout of Income Distribution cum capital withdrawal option INF189A01046

UTI Large& Mid Cap earns an Above Average Process Pillar rating.

The most important driver of the rating is the parent firm's five-year risk-adjusted success ratio of 64%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Strong risk-adjusted performance also influences the rating. This can be seen in the fund's five-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. However, the process is limited by its parent firm's subpar risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.8 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy skews toward smaller, deeper value companies compared with its average peer in the Large & Mid-Cap Morningstar Category. Examining additional factor exposure, this strategy has continually had more high-yield exposure than the Morningstar Category average during recent years, with the portfolio holding more stocks with high dividend or buyback yields. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. In recent months, the strategy was more exposed to the Yield factor compared with its Morningstar Category peers as well. This strategy has also favored low-quality stocks. This means the fund avoids holding companies that are consistently profitable, growing, and have solid balance sheets. Lacking this ballast, the fund's prospects could rest on its ability to beat peers during economic booms. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. Additionally, this strategy has demonstrated a bias away from momentum stocks during these years. Momentum investors tend to expect stocks that have done well recently to continue to do so in the short term. Momentum approaches can entail higher turnover and trading costs since the top stocks can often change. In recent months, the strategy also had less Momentum factor exposure than its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section.

The portfolio is overweight in financial services and communication services relative to the category average by 7.4 and 3.1 percentage points, respectively. The sectors with low exposure compared with category peers are industrials and consumer cyclical, underweight the average by 6.4 and 4.6 percentage points of assets, respectively. The strategy owns 69 securities and is about as top-heavy as the category average, with 33.4% of assets in the top 10 holdings. And in closing, in terms of portfolio turnover, on a year-over-year basis, 56% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.