Bengaluru, 12th November 2024: UTI Mutual Fund announces the launch of two new index funds: the UTI Nifty Alpha Low-Volatility 30 Index Fund and the UTI Nifty Midcap 150 Index Fund. These passive funds offer investors a unique opportunity to invest in a diversified and disciplined portfolio construction, while leveraging UTI MF’s extensive experience in index fund management to provide cost-effective options as compared to actively managed funds. The NFO starts on 11th November 2024 and closes on 25th November 2024.
UTI Nifty Alpha Low-Volatility 30 Index Fund
UTI Nifty Alpha Low-Volatility 30 Index Fund is UTI’s first multi-factor offering and an innovative addition to its index fund offerings. This open-ended scheme tracking Nifty Alpha Low-Volatility 30 Index provides exposure to portfolio of 30 companies within Nifty 100 (100 Large-cap companies) & Nifty Midcap 50 (50 Mid-cap companies) selected based on composite score i.e. 50% Alpha Score & 50% Low Volatility Score. This combination provides investors comparatively better risk adjusted returns across market conditions with reduced volatility.
Salient Features:
- NFO Period: 11th November 2024 to 25th November 2024
- Fund Manager: Mr. Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC
· Benchmark: Nifty Alpha Low-Volatility 30 TRI
· Minimum Investment: Minimum initial investment is ₹1,000 and in multiples of ₹1 thereafter
· Plans & Options: Regular Plan and Direct Plan – offering Growth Option Only
· Load Structure: No entry load; exit load is also nil
UTI Nifty Midcap 150 Index Fund
The UTI Nifty Midcap 150 Index Fund provides exposure to the entire universe of midcap companies listed on NSE in a defined and disciplined manner. The midcap segment offers relatively better long-term return potential compared to Large-caps and Small-caps, due to their balanced growth prospects and ability to scale within expanding market sectors.
Salient Features:
- NFO Period: 11th November 2024 to 25th November 2024
- Fund Manager: Mr. Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC
· Benchmark: Nifty Midcap 150 TRI
· Minimum Investment: The minimum initial investment amount is ₹1,000 and in multiples of ₹1 thereafter
· Plans Available: Regular and Direct Plans, both offering only Growth Option
- Load Structure: No entry load as per SEBI regulations; exit load is also nil
Commenting on the launch of both funds, Mr. Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC, said, “The launch of the UTI Nifty Alpha Low-Volatility 30 Index Fund and UTI Nifty Midcap 150 Index Fund marks another pivotal step in UTI Mutual Fund’s mission to strengthen investors with bespoke and robust investment avenues.
UTI Nifty Alpha Low-Volatility 30 Index Fund is designed to provide investors an opportunity to invest in a diversified portfolio of 30 companies, selected based on their combined Alpha & Low Volatility Score. These two factors are complimentary to each other and hence they provide diversification benefit during different economic and Equity market cycles. The fund may be considered as a one stop solution for investors seeking both growth opportunity with stability combined in a single fund.
On the other hand, UTI Nifty Midcap 150 Index Fund provides investors with exposure to the entire midcap gamut in a defined and focused way. The investment objective of both schemes is to deliver returns that closely match, before expenses, the total returns of the securities represented by the underlying index, while keeping tracking error to a minimum. These offerings reinforce our commitment to providing innovative investment solutions, helping investors achieve their financial goals.”
Product Labels
UTI Nifty Alpha Low-Volatility 30 Index Fund
(An open-ended scheme replicating/tracking Nifty Alpha Low-Volatility 30 TRI)
Benchmark: Nifty Alpha Low-Volatility 30 TRI #
This product is suitable for investors who are seeking*:
• Returns that are commensurate with the performance of the Nifty Alpha Low-Volatility 30 Index over long term, subject to tracking error.
• Investment in securities covered by the Nifty Alpha Low-Volatility 30 Index
UTI Nifty Midcap 150 Index Fund
(An open-ended scheme replicating/tracking Nifty Midcap 150 TRI)
Benchmark: Nifty Midcap 150 TRI #
This product is suitable for investors who are seeking*:
• Returns that are commensurate with the performance of the Nifty Midcap 150 Index over long term, subject to tracking error.
• Investment in securities covered by the Nifty Midcap 150 Index
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
