UTI Mutual Fund has launched two new index funds for its investors — the UTI Nifty200 Quality 30 Index Fund and the UTI Nifty Private Bank Index Fund. Both the funds are projected to provide investors with a distinct chance to engage in specific sector and investment styles within the Indian equity market. UTI utilises its vast expertise in managing index funds to deliver cost-efficient and premium investment opportunities.
UTI Nifty200 Quality 30 Index Fund
The UTI Nifty200 Quality 30 Index Fund is designed to track the Nifty200 Quality 30 TRI. It provides investors with exposure to 30 high-quality companies known for their strong financial metrics and stable balance sheets.
The UTI Nifty200 Quality 30 Index Fund stands out as the first of its kind in the market^, providing
exposure to companies with strong and consistent earnings and stable financials. The quality investment
style has been out of favour for the past four years and this fund may offer an excellent and timely
opportunity for investors to benefit from potential style rotation in the market.
Top Features:
> NFO Period: 2nd September 2024 to 16th September 2024
> Fund Manager: Mr. Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC
> Benchmark: Nifty200 Quality 30 TRI (Based on the Index Composition as on 31st July 2024)
> Minimum Investment: Minimum initial investment is Rs 5,000/- and in multiples of Rs 1/- thereafter. Subsequent minimum investment under a folio is Rs 1,000/- and in multiples of Rs 1/- thereafter with no upper limit
> Plans & Options: Regular Plan and Direct Plan – Both Plan offers Growth Option Only
> Load Structure: No entry load*; exit load is also nil
UTI Nifty Private Bank Index Fund
The UTI Nifty Private Bank Index Fund also stands out as the first of its kind^ in the market, providing exposure to a diversified portfolio of India’s 10 leading private sector banks. The recent underperformance in this sector also offer an opportunity for investors to benefit from the expected potential growth.
Top Features:
> NFO Period: 2nd September 2024 to 16th September 2024
> Fund Manager: Mr. 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 in multiples of Rs 1/- thereafter. Subsequent minimum investment amount under a folio is Rs 1,000/- and in multiples of Rs 1/- thereafter with no upper limit.
> 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.
“The introduction of the UTI Nifty Private Bank Index Fund and UTI Nifty200 Quality 30 Index Fund marks another significant step in UTI Mutual Fund’s mission to empower investors with tailored and robust investment avenues. UTI Nifty200 Quality 30 Index Fund is designed to provide investors with a simple and yet effective way to access a portfolio of 30 high-quality companies within large cap and Midcap universe. This fund aims to closely mirror the performance of the Nifty200 Quality 30 Index, providing a cost-effective option for those looking to diversify their investments with a focus on generating better risk adjusted returns as compared to broad market indices,” said Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC.
“The UTI Nifty Private Bank Index Fund offers investors access to a portfolio of 10 leading private banks, at a time when sector valuations are below long-term averages while fundamentals are healthy. The fund is carefully structured, enabling investors to closely align with the strong performance of the Nifty Private Bank Index, which has historically shown superior rolling returns compared to broader indices like Nifty Bank and Nifty 50,” said Goyal.