UTI Mutual Fund Launches Quant Fund Focuses on Quantitative Investment Strategies
UTI Mutual Fund has launched an open-ended equity scheme called the UTI Quant Fund. It will focus on quantitative investment strategies. The New Fund Offer (NFO) opens on January 2, 2025, and will close on January 16, 2025.
Investment Strategy and Allocations
The fund will utilize a dynamic factor allocation model that balances four different investment factors: momentum, quality, low volatility, and value. The factor model seeks to generate alpha above the BSE 200 TRI benchmark while controlling volatility across various market cycles.
The asset allocation strategy will be as follows:
- 80-100% in equity and equity-related instruments based on a quantitative investment theme.
- 0-20% of the equity and equity-based instruments not have a qualitative investment theme
- 0-20% of the debt and money market instruments
- 0-10% of the units issued by REITs and InvITs
Fund Details
- Investment Objective: Long-term capital appreciation with the investment in equity and equity-related instruments through a quantitative investment theme.
- Investment Approach: An active investment strategy in which fundamental research is integrated with a value of quantitative analysis using market indicators.
- NFO Period: From January 2, 2025, to January 16, 2025.
- Benchmark: BSE 200 TRI.
- Minimum Investment: Rs.1,000 at inception and additional investments in multiples of Rs1.
- Fund Manager: Sharwan Kumar Goyal.
- Plans Available: Regular and Direct Plans; Growth option only.
- Exit Load: 1% if redeemed/switched out within 90 days; nil thereafter.
- Expense Ratio: The maximum total expense ratio (TER) permissible under Regulations 52 (6) (c) is up to 2.25%.
- Product Suitability: Suitable for long-term capital appreciation through a quantitative investment theme.
Suitability for Investors
The UTI Quant Fund is suitable for investors seeking long-term capital growth through a systematic and evidence-based investment approach. Prospective investors must consult their financial advisors to evaluate the suitability of this product.
