UTI Mutual Fund announced the launch of the UTI Nifty50 Equal Weight Index Fund, an open-ended index fund scheme that seeks to generate returns that, before expenses, corresponds to the total return of the securities as represented by the underlying index, subject to tracking error.
The scheme opened for public subscription on May 22, 2023, and will close on June 05, 2023. The scheme re-opens for continuous sale and repurchase on June 09, 2023.
Q. What kind of mutual fund scheme is this?
This is an open-ended index fund replicating/ tracking Nifty50 Equal Weight TRI.
Q. What is the main objective of investing in this fund?
The investment objective of the scheme is to provide returns that, before expenses, correspond 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.
Q. How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
Indicative allocations (% of total assets)
|Securities covered by Nifty50 Equal Weight Index
|Debt/Money Market instruments including Triparty Repo on Government Securities or treasury bills and units of Liquid Mutual Fund
Q. Are there similar mutual funds in the market?
To date, Kotak Mahindra Mutual Fund House has launched one such similar fund, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:
Mutual Fund House
Name of the fund
Kotak Mahindra Mutual Fund
Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund
Q. How will the scheme benchmark its performance?
Nifty50 Equal Weight TRI is the benchmark for UTI Nifty50 Equal Weight Index Fund. The performance of the scheme is benchmarked to the Total Return Variant of the benchmark index which is Nifty50 Equal weight TRI. The benchmark has been chosen on the basis of the investment pattern/objective of the scheme and the composition of the index.
Q. Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” is also “Nil”.
Q. Who will manage this scheme?
Sharwan Kumar Goyal is the dedicated fund manager of the UTI Nifty50 Equal Weight Index Fund.
Q. Does the fund contain any inherent risk?
The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.