UTI Mutual Fund (UTI) launches an open-ended scheme replicating / tracking Nifty50 Equal Weight Total Return Index (TRI) – ‘UTI Nifty50 Equal Weight Index Fund’. The New Fund Offer is open from May 22, 2023 and closes on June 05, 2023. The scheme will re-open for subscription and redemption on ongoing basis from June 09, 2023.
The equal weight index is a stock index that assigns equal value to all the stocks irrespective of their market capitalization in the index. The index’s total value is determined by the value of each stock as if all of them carry equal importance or value in the calculation if the index.
The investment objective of the scheme is to seek 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 can be no assurance or guarantee that the investment objective of the scheme would be achieved.
Mr. Sharwan Kumar Goyal is the dedicated Fund Manager for UTI Nifty50 Equal Weight Index Fund.
Mr. Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC, commented on the launch, “Equal weight strategies are among the tested concepts across the global smart-beta landscape. An equal weighted index provides more diversification when compared to the market cap weighted index. The Nifty50 Equal Weight Index provides the investors with a balances sectoral representation when compared to the Nifty50 Index.”
He further adds, “UTI Nifty50 Equal Weight Index Fund provides the investors with exposure to the Nifty50 Index companies but with an equal weight, i.e., ~2% to each stock.”
Salient features of UTI Nifty50 Equal Weight Index Fund’
- Eligible Investors
- The scheme is open to resident individuals, non-resident Indians, Institutions, Banks, eligible trusts, Financial Institutions, Foreign Portfolio Investor (FPI) etc.
- New Fund Offer Price
- During the NFO period, the units of the scheme will be sold at face value i.e., ₹ 10/- per unit
- Asset Allocation
|Type of Instruments||Indicative Allocation
(% of total Asset)
|Securities covered by Nifty50 Equal Weight Index||95%||100%||Very High|
|Debt / Money Market instruments including Tri-Party Repo on Government securities or Treasury bills and units of Liquid Mutual Fund||0%||5%||Low|
- Minimum Application Amount
- Minimum initial investment is ₹ 5,000/- and in multiples of ₹ 1/- thereafter.
- Subsequent minimum investment amount is ₹ 1,000/- and in multiples of ₹ 1/- thereafter.
- The minimum SIP amount for Daily, Weekly and Monthly SIP is ₹ 500/- and in multiples of ₹ 1/- thereafter.
- The minimum SIP amount for Quarterly SIP is ₹ 1,500/- and in multiples of ₹ 1/- thereafter.
- Plans and Options Available
- Regular Plan and Direct Plan – Both Plans offer only Growth Option
- Load Structure
- Entry Load: NIL (Not Applicable as per SEBI guidelines)
- Exit Load: NIL
- Benchmark Index
Nifty50 Equal Weight TRI
- Facilities offered
- Systematic Investment Plan (SIP)
- Step up Facility
- Any Day SIP
- Micro SIP (Non PAN exempt folio)
- Pause facility
- Systematic Withdrawal Plan (SWP)
- Systematic Transfer Investment Plan (STRIP) (Available as Destination Scheme and Source Scheme)
- Flexi Systematic Transfer Investment Plan (Flexi STRIP) (Available as Destination Scheme and Source Scheme)
- Systematic Investment Plan (SIP)
UTI Nifty50 Equal Weight Index Fund
(An Open-Ended Scheme replicating / tracking Nifty50 Equal Weight Total Return Index (TRI))
This product is suitable for investors who are seeking*:
- Returns that are commensurate with the performance of Nifty50 Equal Weight Index over long term, subject to tracking error.
- Investment in securities covered by the Nifty50 Equal Weight Index