UTI Mutual Fund Launches Two New Passive Investment Funds

UTI Mutual Fund has launched two new index funds, the UTI Nifty Alpha Low-Volatility 30 Index Fund and the UTI Nifty Midcap 150 Index Fund. Investors are exposed to both large- and mid-cap equities through these funds' passive investment strategies.

NFO Details

The NFO for both funds will open on November 11 and close on November 25, 2024. The minimum investment requirement is Rs 1,000, and both Regular and Direct Plans offer the Growth Option. Both funds come with no entry or exit load.

UTI Nifty Alpha Low-Volatility 30 Index Fund

This fund tracks the Nifty Alpha Low-Volatility 30 TRI. Managed by Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies at UTI AMC, the fund is UTI’s first multi-factor offering. It provides exposure to 30 companies selected from the Nifty 100 and Nifty Midcap 50 indices, based on a combination of a 50 per cent Alpha score and a 50 per cent Low Volatility score.

Sharwan Kumar Goyal commented, “This fund offers investors a diversified portfolio of 30 companies, selected based on their Alpha & Low Volatility Scores. These factors complement each other, providing diversification benefits during different market cycles. It’s a one-stop solution for investors seeking both growth and stability.”

UTI Nifty Midcap 150 Index Fund

This fund tracks the Nifty Midcap 150 TRI, providing exposure to the full universe of midcap companies listed on the NSE. Managed by Sharwan Kumar Goyal, it follows a diversified approach aimed at capturing the long-term growth potential of midcap companies, which are generally expected to offer better growth prospects compared to large-caps and small-caps.

Sharwan Kumar Goyal remarked, “This fund gives investors focused exposure to the entire midcap universe. The investment objective of both funds is to deliver returns that closely match, before expenses, the total returns of the underlying index, while minimizing tracking error. These offerings reinforce our commitment to helping investors achieve their financial goals.”

Who Should Invest?

UTI Nifty Alpha Low-Volatility 30 Index Fund: According to UTI Mutual Funds, investors looking for consistent long-term growth with less volatility may consider this investment.

UTI Nifty Midcap 150 Index Fund: UTI Mutual Funds recommends this fund for investors looking to invest in midcap companies with strong growth potential over the long term.