UTI Mutual Fund Introduces UTI NIFTY50 Equal Weight Index Fund

May 23, 2023

UTI Mutual Fund has launched – UTI NIFTY50 Equal Weight Index Fund

It is an open-ended scheme replicating / tracking NIFTY50 Equal Weight Total Return Index

Accordingly, the investment objective of the scheme is to provide returns that, before expenses, corresponds to the total return of the securities as represented by the underlying index, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.

Under normal circumstances, UTI NIFTY50 Equal Weight Index Fund will hold an allocation of 95% to 100% of its assets in Securities covered by Nifty50 Equal Weight Index and 0% to 5% in Debt/ Money Market instruments including Triparty Repo on Government Securities or treasury bill and units of Liquid Mutual Fund.

As per the Scheme Information Document, UTI NIFTY50 Equal Weight Index Fund is a low-cost index Fund which tracks the Nifty50 Equal Weight Index passively. The scheme endeavours to achieve return equivalent to underlying index while minimizing tracking error.

The net assets of the scheme will be invested in stocks constituting the underlying index. This would be done by investing in the stocks comprising the index. The scheme shall endeavour to maintain the same weightage they represent in the index or investing in derivatives on the said index.

UTI NIFTY50 Equal Weight Index Fund’s performance will be benchmarked against NIFTY50 Equal Weight TRI

The scheme will be managed by Mr Sharwan Kumar Goyal and Mr Ayush Jain.

The NFO opens for subscription on May 22, 2023 and closes on June 05, 2023. The schemes will reopen for continuous sale and repurchase within five Business Days from the date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000/- and in multiples of any amount thereafter. 

The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.