Mumbai, Feb 18(Agency) UTI Mutual Fund (UTI) launches a new open-ended Index scheme replicating/tracking the Nifty200 Momentum 30 Index – ‘UTI Nifty200 Momentum 30 Index Fund’. The New Fund Offer opens on February 18, 2021 and closes on March 04, 2021. The scheme will re-open for subscription and redemption on ongoing basis from March 12, 2021. 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 can be no assurance or guarantee that the investment objective of the scheme would be achieved.
The Nifty200 Momentum 30 Index aims to track the performance of 30 high momentum stocks from Nifty 200 index. The Momentum Score for each stock is based on recent 6-month and 12-month price return, adjusted for volatility. Stock weights are based on a combination of the stock’s Normalized Momentum Score and its free-float market capitalization. Mr Sharwan Kumar Goyal, the Fund Manager of the scheme, said, “With the launch of UTI Nifty200 Momentum 30 Index Fund, we are introducing a smart-beta or factor-based strategy. Empirical research done globally suggests that momentum strategy has performed well over in long term. Globally as well as in India, momentum investing is well accepted investment style. Currently, this investing style is available in India through alternative investment vehicles. We are introducing the same under Index Fund route for the first time in India. The scheme is a low-cost index fund which tracks the Nifty200 Momentum 30 Index passively and endeavors to achieve return equivalent to the underlying index while minimizing tracking error.”
The scheme is open to resident individuals, non-resident Indians, Banks, eligible Trusts, Financial Institutions, Foreign Portfolio Investor (FPI) etc. During the NFO period, the units of the scheme will be sold at face value i.e. Rs. 10 per unit 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. The scheme offers Regular and Direct Plan Both the plans offer only Growth Option.