UTI Mutual Fund announced the launch of the UTI Innovation Fund, an open-ended equity scheme following a sectoral or thematic theme.
The scheme opened for public subscription on September 25, 2023, and will close on October 09, 2023. The scheme re-opens for continuous sale and repurchase on October 18, 2023.
Q. What kind of mutual fund scheme is this?
This is an open-ended equity scheme following the innovation theme. Ankit Agarwal, Fund Manager, UTI AMC, commented on the launch, “UTI Innovation Fund marks a significant step forward for investors in navigating the ever-growing landscape of investment opportunities. It is a unique portfolio that is true-to-label, investing predominantly in innovative businesses and disruptors. In an era of rapid technological advancements and evolving market dynamics, it's an opportunity to embrace innovation, adapt to market dynamics, and participate in potential wealth generators that could grow in a non-linear fashion.”
Q. What is the main objective of investing in this fund?
The scheme intends to provide medium to long-term capital appreciation through investment primarily in growth and innovation-oriented equity and equity-related instruments. However, there is no assurance or guarantee 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 net assets) of the scheme’s portfolio will be as follows:
Indicative allocations (% of total assets)
Equity & equity-related instruments following growth and innovation-oriented theme
Debt and Money Market instruments
Low to Moderate
Q. Are there similar mutual funds in the market?
To date, two asset management companies (AMCs) have launched such funds in the past. The following table illustrates the names of the mutual fund houses along with their respective innovation funds.
Name of the mutual fund house
Name of the fund
ICICI Prudential Mutual Fund
ICICI Prudential Innovation Fund
Nippon India Mutual Fund
Nippon India Innovation Fund
Union Mutual Fund
Union Innovation & Opportunities Fund
Q. How will the scheme benchmark its performance?
Nifty 500 TRI is the benchmark for the UTI Innovation Fund. The performance will be benchmarked to the Total Returns Variant 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” would be calculated as under:
-1% if redeemed/switched out within 12 months from the date of allotment. Nil thereafter.
Q. Who will manage this scheme?
Ankit Agarwal andDeepesh Agarwal are the designated fund managers of this scheme.
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. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.