UTI Nifty Private Bank Index Fund New Fund Offer (NFO): Key Information and Details
The UTI Nifty Private Bank Index Fund, launched on September 2, 2024, by UTI Mutual Fund, replicates the Nifty Private Bank Index.
The UTI Nifty Private Bank Index Fund, an open-ended index fund, was launched by UTI Mutual Fund on September 2, 2024. The fund aims to replicate the performance of the Nifty Private Bank Index. Its objective is to provide returns corresponding to the total return of the index's securities, subject to tracking error. This index consists of equity and equity-related securities from the private banking sector.
Investment Details
The new fund offers (NFO) of the UTI Nifty Private Bank Index Fund require a minimum subscription amount of Rs 5,000. The NFO will close on September 16, 2024. Investors in this fund will not incur any entry or exit loads. The fund's allocation strategy is designed to invest between 95 per cent and 100 per cent of its net assets in equity and equity-related securities of companies within the Nifty Private Bank Index. The remaining 0 per cent to 5 per cent can be allocated to debt and money market instruments, including triparty repo on government securities or treasury bills and units of liquid mutual funds.
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Benchmark and Risk Profile
The performance of the UTI Nifty Private Bank Index Fund will be benchmarked against the Nifty Private Bank TRI. The fund is positioned as a suitable option for investors seeking long-term returns that align with the performance of the Nifty Private Bank Index, taking into account tracking errors. The fund’s risk profile aligns with the equity exposure of the Nifty Private Bank Index.
Peer Comparison
|
Scheme Name
|
AUM
(Crore)
|
1 Year
Returns
(per cent)
|
Since
Launch
Returns
(per cent)
|
|
Motilal Oswal BSE Financials
ex Bank 30 Index Fund
|
16.73
|
37.96
|
25.55
|
|
Kotak Nifty Financial Services
Ex-Bank Index Fund
|
18.92
|
35.46
|
37.57
|
|
ICICI Prudential Nifty Bank
Index Fund
|
464
|
16.17
|
16.42
|
|
Navi Nifty Bank Index Fund
|
543.73
|
16.01
|
11.42
|
|
Motilal Oswal Nifty Bank
ndex
|
605.74
|
15.93
|
12.58
|
|
Axis Nifty Bank Index
|
118.77
|
-
|
5.85
|
|
DSP Nifty Bank Index
Fund
|
29.64
|
-
|
4.94
|
|
Nippon India Nifty
Bank Index
|
105.61
|
-
|
10.67
|
|
Tata Nifty Financial
Services Index Fund
|
34.81
|
-
|
8.59
|
Fund Management
The UTI Nifty Private Bank Index Fund is managed by Sharwan Kumar Goyal, who has extensive experience in fund management, currently overseeing a total AUM of Rs 168,222.90 crore across 21 schemes. He has been with UTI AMC since June 2006, focusing on passive, arbitrage, and quant strategies.
Conclusion
The UTI Nifty Private Bank Index Fund is designed for investors seeking returns that align with the Nifty Private Bank Index over the long term. The fund's passive investment strategy aims to minimize tracking errors while replicating the index's performance.
Disclaimer: The article is for informational purposes only and not investment advice.