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.
UTI Nifty Next 50 Index Fund
Investment objective
The scheme’s investment objective 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.
Investment process
UTI Nifty Next 50 Index Fund follows a passive style of investing; that is, it invests in all the companies forming part of the Nifty Next 50 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 scheme had invested 99.86% of its assets in equities, and the remaining were cash and cash equivalents as of May 31, 2023. The scheme had significant exposure to financial services, followed by FMCG and Capital Goods.
Source: UTIMF
Top 5 Holdings for UTI Nifty Next 50 Index Fund
| Name | Sector | Weightage % |
| LTIMindtree Limited. | Technology | 3.92% |
| Cholamandalam Investment & Finance Company Ltd | Financial Services | 3.55% |
| Bharat Electronics Ltd. | Capital Goods | 3.44% |
| Godrej Consumer Products Ltd | Consumer Staples | 3.43% |
| Pidilite Industries Ltd. | Chemicals | 3.4% |
Source: UTIMF
Performance since Inception
If you had invested 10,000 at the fund’s inception, it would now be valued at Rs. 14,966, whereas the benchmark (Nifty Infrastructure TRI) would have fetched Rs. 15,885.
Inception Date – June 08, 2008. Source: utimf.com
Fund Manager
Sharwan Goyal is Fund Manager and Head – Passive, Arbitrage, and Quant 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.
Ayush Jain is a Manager and designated as Investment Associate at UTI AMC Ltd. He is a Chartered Accountant holding a charter from the Institute of Chartered Accountants of India.
He began his career with UTI AMC Ltd in April 2018 and has over four years of experience in Equity Research, Equity Portfolio Analysis & Portfolio Management Services.
Who should invest in UTI Nifty Next 50 Index Fund?
This product is suitable for investors who are seeking:
- Capital Growth in tune with Index returns.
- Passive investment in equity instruments comprised in Nifty Next 50 Index
Why Invest in UTI Nifty Next 50 Index Fund?
- Passive fund for Long Term Wealth Creation – Simple to understand the product for new investors.
- A well-diversified portfolio of 50 companies with better sector diversification than the Nifty 50.
Ideal Time to Stay Invested
- Ideal for investment with a time horizon of, preferably, five years or above
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
Investing in Nifty Next 50 companies provides various advantages, such as investment in large-cap, well-diversified, stable companies with growth potential, lesser downside potential compared to mid-cap and small-cap companies, etc.
UTI Nifty Next 50 Index Fund is one of the largest index funds having Nifty Next 50 as an underlying index. 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.
