NFO Alert: UTI Mutual Fund launches two index funds

UTI Mutual Fund has launched two index funds: the UTI Nifty India Manufacturing Index Fund and the UTI Nifty Midsmallcap 400 Momentum Quality 100 Index Fund.

The New Fund Offer (NFO) for both schemes will open on January 28 and close on February 10.

Both funds will be benchmarked against the Nifty India Manufacturing TRI and Nifty Midsmallcap 400 Momentum Quality 100 TRI. The schemes will be managed by Sharwan Kumar Goyal and Ayush Jain.


The minimum initial investment amount for both schemes is Rs 1,000, with subsequent investments in multiples of Re 1. The minimum SIP amount for daily, weekly, and monthly SIPs is Rs 500, with subsequent amounts in multiples of Re 1. The minimum quarterly SIP amount is Rs 1,500, also in multiples of Re 1.

UTI Nifty India Manufacturing Index Fund

The UTI Nifty India Manufacturing Index Fund is an open-ended scheme that replicates or tracks the Nifty India Manufacturing TRI.

The investment objective of the scheme is to provide returns that, before expenses, correspond to the total return of the securities represented by the underlying index, subject to tracking error.

This scheme is suitable for investors seeking returns that are commensurate with the performance of the Nifty India Manufacturing Index over the long term, subject to tracking error, and who wish to invest in securities covered by the Nifty India Manufacturing Index.

The scheme will allocate 95-100% of its assets in equity and equity-related securities of companies constituting the Nifty India Manufacturing Index and 0-5% in debt/money market instruments, including triparty repo on government securities or treasury bills, and units of liquid mutual funds.

The fund will be managed passively with investments in stocks comprising the underlying index, subject to tracking error. The investment strategy will focus on minimizing tracking error through regular rebalancing, considering changes in stock weights and the incremental collections or redemptions in the scheme.

UTI Nifty Midsmallcap 400 Momentum Quality 100 Index Fund

The UTI Nifty Midsmallcap 400 Momentum Quality 100 Index Fund is an open-ended scheme that replicates or tracks the Nifty Midsmallcap 400 Momentum Quality 100 TRI.

The investment objective of the scheme is to provide returns that, before expenses, correspond to the total return of the securities represented by the underlying index, subject to tracking error.

This scheme is suitable for investors looking for returns in line with the performance of the Nifty Midsmallcap 400 Momentum Quality 100 Index over the long term, subject to tracking error, and who want to invest in securities covered by the Nifty Midsmallcap 400 Momentum Quality 100 Index.

The scheme will allocate 95-100% in equity and equity-related securities of companies constituting the Nifty Midsmallcap 400 Momentum Quality 100 Index, and 0-5% in debt/money market instruments, including triparty repo on government securities or treasury bills, and units of liquid mutual funds.