NFO Alert: UTI Mutual Fund launches UTI Nifty Midcap 150 Exchange Traded Fund; all you need to know

UTI Mutual Fund announced the launch of the UTI Nifty Midcap 150 Exchange Traded Fund, an open-ended scheme replicating/tracking the Nifty Midcap 150 TRI.

This product is suitable for investors seeking

• Long-term capital appreciation
• Investment in securities covered by Nifty Midcap 150 TRI.

The scheme opened for public subscription on August 18, 2023, and will close on August 28, 2023. The scheme re-opens for continuous sale and repurchase on September 05, 2023.

What kind of mutual fund scheme is this?

This is an open-ended scheme replicating/tracking the Nifty Midcap 150 TRI.

Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC, commented on the launch, “The UTI Nifty Midcap 150 ETF enables investors to tap into India's midcap universe through the Midcap 150 index, offering the potential for attractive returns and exposure to emerging leaders. With its affordability, it serves as a cost-effective avenue to invest in the midcap market segment.”

What is the main objective of investing in this fund?

The investment objective of the scheme is to provide returns that, before expenses, correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of Rs 5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Are there similar mutual funds in the market?

To date, many mutual fund houses have launched many such similar funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:

How will the scheme benchmark its performance?

Nifty Midcap 150 TRI is the benchmark for UTI Nifty Midcap 150 ETF. The performance of the scheme is benchmarked to the Total Return Variant of the benchmark index which is Nifty Midcap 150 TRI. The Benchmark has been chosen on the basis of the investment pattern/objective of the scheme and the composition of the index.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would also be “Nil”.

Who will manage this scheme?

Sharwan Kumar Goyal is the dedicated manager chosen to look after the investments in this fund.

Does the fund contain any inherent risk?

The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.