Mutual Funds

UTI Nifty Index Fund

Nifty Index Fund Summary

UTI Nifty Index Fund launched on 06th March, 2000, this is an Open-Ended Fund. The principal investment objective of the scheme is to invest in stocks of companies comprising the Nifty 50 index and endeavor to achieve return equivalent to Nifty 50 Index by “passive” investment. The fund is completely focused on investment in equity stocks with investments of 100. The scheme is suitable for those investors looking to take market exposure (equity as an asset class) at a relatively cheaper cost, investors looking to eliminate the un-systematic risk of a specific company or a sector, ready to invest with a time horizon of preferably, 5 years or above, an also investment through Systematic Investment Plan (SIP) may help in tackling the volatility of broader equity market.

Portfolio Diversification (As on 30th June, 2020)

Asset Allocation
Large Cap Investments 100.00%
Mid Cap Investments 0%
Small-Cap Investments 0%
Other 0%
Industry Exposure
Financial Services34.00%
Others18.00%
Oil & Gas15.00%
IT14.00%
Consumer Goods13.00%
Automobile06.00%

Top 10 Holding (as on 30th June, 2020)

Reliance Industries Ltd. 12.45%
HDFC Bank Ltd. 10.65%
Housing Development Finance Corporation Ltd. 7.00%
Infosys Ltd. 6.21%
ICICI Bank Ltd. 5.25%
Tata Consultancy Services Ltd. 5.04%
Kotak Mahindra Bank Ltd. 4.59%
Hindustan Unilever Ltd. 4.49%
ITC Limited 3.92%
Bharti Airtel Ltd. 3.10%
Top 10 Holding UTI Nifty Index Fund

UTI Index Fund Performance

Performance (As on 30th June, 2020)

 PeriodFund ReturnBenchmark Return
 1 Y -12.07% -11.60%
 3 Y 3.56% 3.95%
 5 Y 5.15% 5.55%
 Since Inception 9.86% 10.84%

Scheme Strategy

  • Fund seeks to replicate the Nifty 50 Index, by buying the same number of stocks in the same proportion as they are in the index and do not take any active sector or stock exposure that is different from what is seen on the chosen index.
  • The constituents of an index represent the largest companies across the sectors, which are the most liquid and lower company-specific risk.
  • Fund’s lowest cost of operations relative to actively managed funds is an added advantage.

UTI Nifty Index Fund Management

The nifty index fund has been managed by Mr. Sharwan Kumar Goyal since July 2018. He has done CFA and MMS. Currently, he is Vice President & Fund Manager for Overseas Investments at the UTI. He manages six funds in UTI including this fund.

Important Measures (as on 30th June, 2020)

ComponentValue
Standard Deviation20.46%
Sharpe-0.01
Beta1.00

Benchmark: Nifty 50 TRI

Net AUM: ₹2362.15 crores

Option Available: Growth Option & Dividend Option (Payout and Re-investment)

Expense Ratio:Regular Plan- 0.17% & Direct Plan- 0.10%

Entry Load: Nil

Exit Load: Nil

Portfolio Turnover Ratio (Annual): 19%

NAV (in Rs): (as on 30th June, 2020)

Growth Option
Direct PlanRs. 68.26
Regular PlanRs. 67.66

Investment Risk: Moderately High

Market capitalization: Large Cap

Minimum Investment Amount:₹ 5000

Scheme suitable only if you are an investor-

  1. Who is looking for taking market exposure (equity as an asset class) at relatively cheaper cost.
  2. Who is looking to eliminate unsystematic risk of specific companies or a sector investment horizon.
  3. Whose ideal investment time horizon is preferably, 5 years or above.
  4. Whose investment through Systematic Investment Plan (SIP) may help in tackling the volatility of broader equity markets .

Tarrakki’s View

UTI NIFTY Index fund is a passively managed fund that endeavors to minimize the return differential between the fund and the underlying index. We prefer investing in an index fund (NIFTY/SENSEX) fund versus an actively managed large-cap fund. An index fund has a significantly lower expense ratio versus a large-cap fund (0.10% v/s 1.25%). This lower expense ratio will help investors generate higher returns versus several large-cap funds who fail to beat the index. This fund is recommended for the investors who want to invest for the long term. The risk involved is moderately high.

About UTI AMC

UTI is the seventh largest asset management company in India in terms of mutual fund QAAUM as of September 30, 2019, according to CRISIL. With more than 11 million live Folios as of September 30, 2019, their client base accounts for 12.8% of the approximately 86 million folios that, according to CRISIL. For purposes of the SEBI Mutual Fund Regulations, their four sponsors are the State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda. They have 51,000 Independent Financial Advisors as of 30th September, 2019.

Address: UTI Tower, ‘Gn’ Block, Bandra – Kurla Complex, Bandra (East), Mumbai – 400 051

Phone No: 1800 266 1230 / 022 6227 8000

Email: invest@uti.co.in

Website: www.utimf.com

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