UTI Mutual Fund launches ‘UTI Nifty Next 50 Index Fund’
UTI Mutual Fund (UTI) launches a new open ended scheme replicating/tracking the Nifty Next 50 Index, -‘UTI Nifty Next 50 Index Fund’. The New Fund Offer opens on June 8, 2018 and will close on June 22, 2018.
The principal investment objective of the scheme is to invest in stocks of companies comprising the underlying index and endeavor to achieve return equivalent to underlying index by “passive” investment. The scheme will be managed by replicating the index in the same weightages in the underlying Index with the intention of minimizing the performance differences between the scheme and the underlying Index in capital terms, subject to market liquidity, costs of trading, management expenses and other factors which may cause tracking error. The scheme would alter the scripts/weights as and when the same are altered in the underlying Index.
Mr. Kaushik Basu, Fund Manager of UTI Nifty Next 50 Index Fund said “UTI Nifty Next 50 Index is a passively managed Fund i.e the amount collected under the scheme will be invested in securities of companies comprising the Nifty Next 50 Index and in the same weightages as represented in the Index.”
Mr. Suraj Kaeley, Group President (Sales and Marketing), UTI AMC said, “Index Funds are highly flexible and can be used as a tool for gaining exposure to equity markets. UTI Nifty Next 50 Index Fund has a number of benefits such as diversification, low cost and transparency. Investors can invest in a diversified portfolio representative of broad Indian economy and create a long term ‘Core’ holding in their portfolio.”