UTI Mutual Fund Launches Two New Index Funds
UTI Mutual Fund has launched two new index funds, the UTI Nifty Private Bank Index Fund and the UTI Nifty200 Quality 30 Index Fund. Both the new funds tap into the rich experience that UTI has in managing index funds to offer cost-effective, quality investment solutions to help investors target specific sectors and styles within the Indian equity market.
UTI Nifty200 Quality 30 Index Fund
UTI Nifty200 Quality 30 Index Fund is an exciting new entrant in UTI Mutual Fund’s index product suite. The scheme is an open-ended one that trackers and replicates the Nifty200 Quality 30 TRI-east Investors with a diversified portfolio of 30 high-quality companies that exhibit strong financial metrics and stable balance sheets.
This fund will be unparalleled in the market and will focus on firms posting consistent earnings with stable financials. Besides this fact, it is timely for investors to reap from the likely style rotation that will soon hit the market since quality as an investment style has been out of favour for the past four years.
Key Features:
- NFO Period: 2nd September 2024 to 16th September 2024.
- Fund Manager: Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC.
- Benchmark: Nifty200 Quality 30 TRI (Based on the Index Composition as of 31st July 2024).
- Minimum Investment: Initial investment of Rs.5,000 and in multiples of Rs.1 thereafter. Subsequent investments require a minimum of Rs.1,000 with no upper limit.
- Plans and Options: Available as Regular and Direct Plans, each with only a Growth Option.
- Load Structure: No entry load; exit load is nil.
UTI Nifty Private Bank Index Fund
The UTI Nifty Private Bank Index Fund is also the first of its kind offering in the market, giving investors exposure to a diversified portfolio of India’s 10 leading private sector banks. Since the recent underperformance in this sector, the fund is an effective opportunity for the benefit of investors from expected potential growth.
Key Features:
- NFO Period: 2nd September 2024 to 16th September 2024.
- Fund Manager: Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC.
- Benchmark: Nifty Private Bank TRI
- Minimum Investment: The minimum initial investment amount is Rs.5,000 and subsequently in multiples of Rs.1 thereof. A minimum of Rs.1,000 is required for subsequent investments, and there is no upper limit.
- Plans Offered: Available in Regular and Direct Plans; each offers only a Growth Option.
- Load Structure: No entry load; exit load is also nil.
Commenting on the launch, it was emphasized that these funds represent a strong move in UTI Mutual Fund’s corporate avenue to provide investors with appropriate and strong investment avenues. UTI Nifty200 Quality 30 Index Fund will provide an efficient way to take exposure to a portfolio of 30 high-quality companies with an objective to generate better risk-adjusted returns than broader market indices.
On the UTI Nifty Private Bank Index Fund, Goyal said this provides investors with an opportunity to participate in a basket of 10 leading private banks when the sector valuations are also at a level below their long-term averages, against healthy fundamentals. The fund is designed to closely correlate with the strong performance of the Nifty Private Bank Index, which has traditionally outshone broader indices like Nifty Bank and Nifty 50 on rolling return differentials.
These new UTI Mutual Fund products represent focused investment avenues that are likely to reward investors in certain sectors of Indian equity markets.
