Mutual Fund News : UTI Mutual Fund Introduces UTI Sensex Index Fund

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UTI Mutual Fund has launched an open-ended equity index scheme - UTI Sensex Index Fund.

The scheme will be replicating/tracking S&P BSE Sensex Index.

The investment objective of UTI Sensex Index Fund is to provide returns that, before expenses, closely correspond to the total returns 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.

UTI Sensex Index Fund is mandated to invest 95% to 100% of its total assets in Equity & Equity related instruments covered by the S&P BSE Sensex index. The scheme may also hold 0% to 5% of its assets in Debt/ Money Market instruments including Triparty Repo on Government Securities or treasury bills and units of Liquid Mutual Fund.

The net assets of the scheme will be invested in stocks constituting the underlying index. This would be done by investing in the stocks comprising the index. The scheme shall endeavour to maintain the same weightage they represent in the index.

The scheme may take exposure in derivative instruments up to 20% of the net assets of the scheme.

Being an Equity Index Fund, the scheme does not intend to invest in structured obligations and credit enhancements.

As per the Scheme Information Document, UTI Sensex Index Fund is a low-cost Index Fund that tracks the S&P BSE Sensex Index passively. The scheme endeavors to achieve a return equivalent to the underlying index while minimizing tracking error.

The scheme is a passively managed fund and therefore the portfolio turnover will be confined only to a rebalancing of the portfolio on account of new subscriptions, redemptions, and changes in the composition of the underlying index.

The S&P BSE SENSEX is India’s most tracked bellwether index. It is designed to measure the performance of the 30 largest, most liquid, and financially sound companies across key sectors of the Indian economy that are listed at BSE Ltd.

UTI Sensex Index Fund’s performance will be benchmarked against S&P BSE Sensex – TRI (Total Return Index). The benchmark has been chosen based on the investment pattern/objective of the scheme/s and the composition of the index.

The benchmark may be changed in the future if a benchmark better suited to the investment objective of the scheme is available.

The fund will be managed by Mr Sharwan Kumar Goyal.

The NFO opens for subscription on January 19, 2022 and closes on January 24, 2022. The scheme will reopen for continuous sale and repurchase on February 01, 2022.

The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan only having Growth Option.