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NFO alert: UTI Mutual Fund launches UTI Nifty 10-year and 5-year benchmark G-Sec ETFs; details inside

18 September 20243 mins read by Angel One
In the following article we shed light on NFO, the fund’s objective, fund allocation, fund managers and benchmark performance.
NFO alert: UTI Mutual Fund launches UTI Nifty 10-year and 5-year benchmark G-Sec ETFs; details inside
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UTI Nifty 10-year Benchmark G-Sec ETF is an open-ended, Other ETFs scheme launched by UTI Mutual Fund on January 19, 2024. The scheme aims to provide returns that match the total returns of the securities as represented by the underlying Nifty 10-year Benchmark G-Sec Index, subject to tracking error. There is no entry or exit load, and the minimum subscription amount is Rs 5,000. The New Fund Offer (NFO) closes on January 23, 2024.

UTI Nifty 5-year Benchmark G-Sec ETF is an open-ended, Other ETFs scheme from UTI Mutual Fund that launched on January 19, 2024. The scheme aims to provide returns that match the total returns of the securities as represented by the underlying Nifty 5-year Benchmark G-Sec Index, subject to tracking error. There is no entry or exit load, and the minimum subscription amount is Rs 5,000. The New Fund Offer closes on January 23, 2024.

According to Potential Risk Class Matrix, it is a A-III Relatively High Interest rate risk and Relatively Low Credit Risk

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.

Benchmark – Nifty 10-year Benchmark G-Sec Index and Nifty 5-year Benchmark G-Sec Index respectively.

Funds Allocation 

Instruments  Indicative Allocation (% of Total Assets)  Risk Profile 
Securities covered by Nifty 10 yr Benchmark G-Sec Index and Nifty 5 yr Benchmark G-Sec Index Minimum 95%, Maximum 100% Medium to High
Money Market Instruments, including Tri-Party Repo on government securities or T-bills, cash & cash equivalents or Liquid category of Mutual Fund 0% to 5% Low

Fund Manager 

Jaydeep Bhowal is the dedicated Fund Manager of UTI Nifty 10-year Benchmark G-Sec ETF and UTI Nifty 5-year Benchmark G-Sec ETF.

Historical Performance 

Category  6 M  YTD  1 Y  2 Y  3 Y  5 Y 
Nifty 50 8.67% -1.24% 18.15% 8.85% 14.54% 14.49%
Benchmark: Nifty 10 yr and 5 yr Benchmark G-Sec Index 2.53% 0.36% 8.03% 4.79% 3.36% 5.82%
Category Average 11.37% -0.01% 21.63% 11.78% 15.28% 14.18%

Associated Risk 

According to the Scheme Information Document, the scheme carries “Moderate Risk” and is best suited to investors who understand that their investment is only at moderate risk. However, if an investor is unsure whether the product is right for them, they should check with their financial advisor.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

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