UTI Mutual Fund (UTI) launches an open-ended scheme replicating/tracking the S&P BSE Low Volatility Total Return Index (TRI) – ‘UTI S&P BSE Low Volatility Index Fund’. The New Fund Offer opens on February 14, 2022 and closes on February 25, 2022. The scheme will re-open for subscription and redemption on ongoing basis from March 07, 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.
Mr. Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC, is the Fund Manager for the scheme.
On the occasion, Mr. Goyal, said, “Low volatility investing aims to provide better risk adjusted returns over time with less volatility for a relatively smoother ride. Stocks with lower volatility generally tend to hold up better when markets decline rapidly.”
“UTI S&P BSE Low Volatility Index Fund, our latest offering in the smart-beta fund category, will offer exposure to a diversified portfolio of relatively stable companies within the Large and Midcap segment, by investing into the constituents of S&P BSE Low Volatility Index.”, he added.
Salient features of UTI Sensex Index Fund
- Eligible Investors
The scheme is open to resident individuals, non-resident Indians, 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., Rs. 10/- per unit.
- Asset Allocation
Type of Instruments | Asset Allocation (% of total Net Assets) | Risk Profile | |
Maximum | Minimum | ||
Securities covered by S&P BSE Low Volatility Index | 100% | 95% | Medium to High |
Debt / Money Market instruments including Triparty Repo and units of Liquid Mutual Fund | 5% | 0% | Low |
- Minimum Application Amount
Minimum initial investment is Rs. 5,000/- and in multiples of Re. 1/- thereafter.
Subsequent minimum investment under a folio is Rs. 1,000/- and in multiples of Re. 1/- thereafter with no upper limit.
- Plans and Options Available
The scheme offers Regular Plan and Direct Plan.
Both the plans offer only Growth Option.
- Load Structure
o Entry Load: NIL (Not applicable as per SEBI guidelines)
o Exit Load: NIL
- Benchmark Index
S&P BSE Low Volatility TRI
- Special Products/Facilities Offered
o Systematic Investment Plan (SIP)
- Step up facility
- Any Day SIP
- Micro SIP (Non PAN exempt folios)
- Pause facility
o Systematic Withdrawal Plan (SWP)
o Systematic Transfer Investment Plan (STRIP) (Available as Destination Scheme and Source Scheme)
o Flexi Systematic Transfer Investment Plan (Flexi STRIP) (Available as Destination Scheme and Source Scheme)
Product Label
UTI S&P BSE Low Volatility Index Fund
(An open-ended scheme replicating/tracking the S&P BSE Low Volatility Index TRI)
This product is suitable for investors who are seeking*:
- Capital growth in tune with the index returns
- Passive investments in equity instruments comprised in S&P BSE Low Volatility Index
(Product labelling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made. *Based on the Index Composition as on January 11, 2022.)
