The fund house has launched UTI Nifty Exchange Traded Fund & UTI Sensex Exchange Traded Fund.
UTI Mutual Fund (UTI) has launched two new schemes, UTI Nifty Exchange Traded Fund and UTI Sensex Exchange Traded Fund. The NFO period are opened from August 24, 2015 and will close on August 26, 2015. The schemes will be traded in BSE and NSE from 3rd September 2015, as stated in the press release issued by the company.
Both the schemes are open ended Exchange Trade Funds. The investment objective of the schemes 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.
UTI Nifty Exchange Traded Fund will invest in securities which are constituents of CNX Nifty Index and in Money Market Instruments in accordance with the asset allocation pattern. The minimum application amount is Rs.5000 and in multiples of Re.1 thereafter.
UTI Sensex Exchange Traded Fund will invest in securities which are constituents of S&P BSE Sensex Index and in Money Market Instruments in accordance with the asset allocation pattern. The minimum application amount is Rs.5000 and in multiples of Re.1 thereafter.
Suraj Kaeley, Group President (Sales and Marketing), UTI AMC said, “ETFs are highly flexible and can be used as a tool for gaining instant exposure to equity markets. UTI Nifty ETF and UTI Sensex ETF have 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. UTI Nifty ETF and UTI Sensex ETF are amongst one of the lowest cost ETFs in the country.”
He further adds, “ETFs launched by UTI are well suited for Institutions and PF Trusts who over a period of time will benefit from the growth in the Indian Economy.”
The fund manager of both the schemes is Kaushik Basu.
