UTI Mutual Fund (UTI) has launched an open-ended scheme tracking Nifty Midcap 150 Quality 50 Total Return Index (TRI) - UTI Nifty Midcap 150 Quality 50 Index Fund. The New Fund Offer opened on March 28, 2022, and closes on April 5, 2022. The scheme will re-open for subscription and redemption on an ongoing basis from April 15, 2022.
The investment objective of the scheme 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.
Sharwan Kumar Goyal, Head - Passive, Arbitrage & Quant Strategies, UTI AMC, is the Fund Manager for the scheme.
Goyal commented on the launch, “NIFTY Midcap 150 Quality 50 Index offers a diversified exposure at stock level & maximum weight assigned to each stock is lower of – 5% or 5 times the weight of the stock in NIFTY Midcap 150 Index.”
“UTI Nifty Midcap 150 Quality 50 Index Fund is a low-cost smart beta Index Fund that tracks the Nifty Midcap 150 Quality 50 Index passively. Our newly launched scheme will endeavor to achieve return equivalent to returns of the underlying index while minimizing tracking error,” he added.
The minimum initial investment is Rs 5,000 and in multiples of Rs 1 thereafter. Subsequent minimum investment under a folio is Rs 1,000 and in multiples of Rs 1 thereafter with no upper limit.