UTI is one of the pioneers of the Indian Mutual Fund Industry. With an AUM of approximately Rs 2.4 Lakh crore, the AMC is among the most trusted names in the mutual fund space. The UTI Mutual Fund offers products across asset classes.
Let us discuss the flagship product – UTI Nifty 500 Value 50 Index Fund.
UTI Nifty 500 Value 50 Index Fund
Investment Objective:
The investment objective of the scheme is to provide returns that, before expenses, correspond to the total return of the securities as represented by the underlying index, subject to tracking error.
Investment Process:
UTI Nifty 500 Value 50 Index Fund follows a passive style of investing; that is, it invests in all the companies forming part of the Nifty 500 Value 50 Total Return Index (the underlying index) in the same proportion of the underlying index to earn a return as much as the underlying index, before expenses.
Portfolio Composition
The portfolio is biased towards large-cap stocks, with 56.21% of the fund allocation in large-cap stocks and the remaining 31.43% and 12.36% in mid-cap and small-cap, respectively.
The scheme had significant exposure to the Financial Services sector, followed by Oil, Gas and consumables, and Metals & mining.
Source: UTI MF
Top 5 Holdings for UTI Nifty 500 Value 50 Index Fund
| Name | Sector | Weightage % |
| Power Finance Corporation Ltd. | Financial | 5.78 |
| NTPC Ltd. | Energy | 5.42 |
| Oil & Natural Gas Corporation Ltd. | Energy | 5.18 |
| Tata Steel Ltd. | Metals & Mining | 5.15 |
| Hindalco Industries Ltd. | Metals & Mining | 5.12 |
Source: UTI MF
Performance since Inception
If you had invested 10,000 at the fund’s inception, it would now be valued at Rs. 11,479, whereas the benchmark (Nifty 500 Value 50 TRI) would have fetched Rs. 11,503.
Inception Date: July 31, 2023.
Source: utimf.com
Fund Manager
Sharwan Goyal is the Fund Manager and Head of Passive, Arbitrage, and Quantum strategies at UTI AMC. He is a CFA Charter holder from CFA Institute, USA, and holds a post-graduate degree in Management (MMS) from Welingkar Institute of Management, Mumbai.
He has over 16 years of experience in Risk Management, Equity Research, Portfolio Analysis, and Fund Management at UTI AMC.
Who Should Invest in UTI Nifty 500 Value 50 Index Fund?
· This fund is suitable for Investors looking for returns that are commensurate with the performance of the Nifty 500 Value 50 Index over the long term.
Ideal Time to Stay Invested
· Ideal for investment with a time horizon of, preferably, five years or above.
· Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
UTI Nifty 500 Values 50 index fund is an open-ended fund that allows investors to invest in diversified companies with good growth potential.
However, the fund was launched approximately three months ago, so it will be essential to monitor how the fund performs in the future.
UTI Nifty 500 Value 50 Index Fund has been classified as having very high risk. Investors willing to invest passively for long-term growth and want to save on expense ratio can consider this fund.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
