UTI Mutual Fund Launches 2 New Index Funds: UTI Nifty200 Quality 30 Index Fund and UTI Nifty Private Bank Index Fund

On Sep 3, 2024

Bengaluru, 03 September: UTI Mutual Fund (UTI) is delighted to announce the launch of two new index funds: the UTI Nifty Private Bank Index Fund and the UTI Nifty200 Quality 30 Index Fund. These funds offer investors a unique opportunity to invest in targeted sector/investment styles of the Indian equity market, leveraging UTI’s extensive experience in index fund management to provide cost-effective and high-quality investment options.

UTI Nifty200 Quality 30 Index Fund

The UTI Nifty200 Quality 30 Index Fund is innovative addition to UTI MF’s index fund offerings. This open-ended scheme replicating/tracking Nifty200 Quality 30 TRI offers investors a unique opportunity to invest in a diversified portfolio of 30 high-quality companies with strong financial metrics and stable balance sheet.

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.

Salient 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 ₹5,000/- and in multiples of ₹1/- thereafter. Subsequent minimum investment under a folio is ₹1,000/- and in multiples of ₹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

(*In terms of provision no. 10.4.1 a. of para 10.4 under Chapter 10 of SEBI Master Circular for Mutual Funds dated June 27, 2024, no entry load will be charged by the Scheme to the investor effective August 1, 2009.)

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.

Salient 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 ₹5,000/- and in multiples of ₹1/- thereafter. Subsequent minimum investment amount under a folio is ₹1,000/- and in multiples of ₹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.

^ Source : AMFI as on Aug 30, 2024

Commenting on the launch of both funds, Mr. Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC, said, “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.

On the other hand, 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.”

Past performance may or may not sustain in future.

Product Label

UTI Nifty200 Quality 30 Index Fund

(An open-ended scheme replicating/tracking Nifty200 Quality 30 TRI)

This product is suitable for investors who are seeking*:

Returns that are commensurate with the performance of the Nifty200 Quality 30 Index over long term, subject to tracking error
Investment in securities covered by Nifty200 Quality 30 Index

UTI Nifty200 Quality 30 Index Fund	Benchmark: Nifty200 Quality 30 TRI #

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note: 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.

# Based on the Index Composition as on 31st July 2024.

UTI Nifty Private Bank Index Fund

(An open-ended scheme replicating/tracking Nifty Private Bank TRI)

This product is suitable for investors who are seeking*:

Returns that are commensurate with the performance of the Nifty Private Bank Index over long term, subject to tracking error
Investment in securities covered by Nifty Private Bank Index

UTI Nifty Private Bank Index Fund	Benchmark: Nifty Private Bank TRI#

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them

Note: 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.

# Based on the Index Composition as on 31st July 2024.

Note: Product labeling assigned during the NFO is based on an 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.