UTI Mutual Fund introduces two innovative index funds for diversified investment; here are the complete details

With the introduction of these two new schemes, investors can now tap into the growth potential of mid-small cap momentum-quality stocks and India's booming manufacturing sector.

UTI Mutual Fund, a pioneer in passive fund management, has launched two innovative index funds – UTI Nifty Midsmallcap 400 Momentum Quality 100 Index Fund and UTI Nifty India Manufacturing Index Fund. These funds offer investors exposure to high-growth mid-small cap stocks and India's expanding manufacturing sector, respectively.

The New Fund Offer (NFO) period for both schemes is from January 28, 2025, to February 10, 2025.

Management comments
Commenting on the launch, Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC, said: "UTI AMC is among the largest asset managers in the passive category with over two decades of experience in managing passive funds. With these new offerings, we aim to provide investors an opportunity to invest in sectors and strategies that offer immense growth potential. Our approach ensures a disciplined portfolio construction, aligning with a defined selection process. Through our expanded product line in the passive category, we intend to offer tailored solutions that align with investors' long-term financial goals and help them navigate today's dynamic financial landscape."

Fund Details

1. UTI Nifty Midsmallcap 400 Momentum Quality 100 Index Fund
This is India's first multi-cap and multi-factor index fund, combining momentum and quality factors to provide a diversified investment approach within the mid-small cap space.

• Investment Objective: The fund seeks to provide returns in line with the Nifty Midsmallcap 400 Momentum Quality 100 TRI, subject to tracking error.
• Fund Manager: Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies.
• Benchmark: Nifty MidSmallcap 400 Momentum Quality 100 TRI.
• Minimum Investment: Rs 1,000 and in multiples of Re 1 thereafter.
• Plans & Options: Regular Plan and Direct Plan – Growth Option only.
• Load Structure: No entry or exit load.

Fund Features

• A unique factor-based approach combining momentum and quality strategies.
• Exposure to mid-small cap stocks with strong growth potential.
• Style diversification for portfolio stability.
• Low-cost passive investing with disciplined rebalancing.

Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC added: "With the UTI Nifty Midsmallcap 400 Momentum Quality 100 Index Fund, investors can benefit from a well-structured approach that brings together two proven investment factors—momentum and quality. This unique combination offers exposure to companies that have both high growth potential and strong financial fundamentals, making it a compelling choice for long-term investors."

2. UTI Nifty India Manufacturing Index Fund
This fund offers investors a disciplined exposure to India's manufacturing sector, which is set to benefit from government policies, increasing domestic demand, and global supply chain shifts.

• Investment Objective: To track the Nifty India Manufacturing TRI while minimising tracking errors.
• Fund Manager: Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies.
• Benchmark: Nifty India Manufacturing TRI.
• Minimum Investment: Rs 1,000 and in multiples of Re 1 thereafter.
• Plans & Options: Regular Plan and Direct Plan – Growth Option only.
• Load Structure: No entry or exit load.

Fund Features

• Direct exposure to India's growing manufacturing sector.
• Low-cost passive investment with minimal tracking error.
• Benefit from the 'Make in India' and 'China+1' strategies.
• Portfolio rebalancing to align with sectoral shifts.

Highlighting the importance of the manufacturing sector, Goyal further stated: "India's manufacturing industry is poised for significant expansion, supported by favourable policies, a strong domestic market, and global shifts in supply chains. The UTI Nifty India Manufacturing Index Fund provides investors with a disciplined and diversified way to participate in this growth story, while ensuring cost efficiency and transparency through passive investing."

Who Should Invest?
UTI Nifty Midsmallcap 400 Momentum Quality 100 Index Fund

• Investors seeking long-term capital appreciation with exposure to mid-small cap stocks.
• Those looking for factor-based investing combining momentum and quality.
• Passive investors aiming for low-cost, diversified exposure to mid-small cap stocks.

UTI Nifty India Manufacturing Index Fund

• Investors who believe in India's long-term manufacturing growth story.
• Those looking for sectoral diversification in their portfolio.
• Investors looking for passive exposure to India's industrial and manufacturing leaders.

Conclusion
UTI Mutual Fund continues to innovate in the passive investment space with these two new index funds, catering to investors looking for factor-based investing and sector-specific growth opportunities. Whether you want mid-small cap momentum-quality exposure or manufacturing sector participation, these funds provide cost-effective and disciplined investment options.

Disclaimer: The article is for informational purposes only and not investment advice.