UTI Mutual Fund announced the launch of the UTI S&P BSE Housing Index Fund, an open-ended index fund scheme that in securities covered by the S&P BSE Housing 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 the S&P BSE Housing Total Return Index (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:
Instruments | Indicative allocations (% of total assets) | Risk Profile | |
| Minimum | Maximum | ||
| Securities covered by S&P BSE Housing Index | 95% | 100% | Very High |
| Debt/Money Market instruments including Triparty Repo on Government Securities or treasury bills and units of Liquid Mutual Fund | 0% | 5% | Low |
Q. Are there similar mutual funds in the market?
To date, no asset management company (AMC) has launched any fund in this category.
Q. How will the scheme benchmark its performance?
S&P BSE Housing TRI is the benchmark for UTI S&P BSE Housing Index Fund. The performance of the scheme is benchmarked to the Total Return Variant of the benchmark index which is S&P BSE Housing 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 theScheme 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.
