NFO Alert: UTI Mutual Fund Launches Nifty500 Shariah Index Fund

UTI Mutual Fund has opened the New Fund Offer (NFO) for the UTI Nifty500 Shariah Index Fund on February 5, 2026. The offer will remain open until February 18, 2026. The scheme is structured as an open-ended equity fund and falls under the flexi-cap category. 

The minimum investment amount is ₹1,000. The fund is available only under the growth plan. There is no lock-in period, and the scheme does not carry an exit load. 

Benchmark and Objective 

The scheme will track the NIFTY 500 Shariah Total Return Index. Its objective is to provide returns, before expenses, that correspond to the total returns of the securities represented by the index, subject to tracking error. 

The benchmark index includes companies that meet Shariah investment guidelines. It offers exposure across large, mid, and small-cap stocks that qualify under the screening rules. 

Investment Approach 

The fund will follow a passive investment strategy. It will invest in the same securities that form part of the index and in similar weightings. The aim is to mirror the index’s performance rather than actively select stocks. 

As an index fund, the portfolio will be adjusted in line with changes in the benchmark. The focus will remain on maintaining alignment with the index composition. 

Risk and Fund Management 

The scheme has been classified under the “Very High” risk category on the riskometer. This reflects the equity nature of the portfolio and the potential for market fluctuations. 

The fund will be managed by Sharwan Kumar Goyal and Ayush Jain. It is offered by the UTI Mutual Fund and will allow ongoing subscriptions and redemptions after the NFO period. 

Read More: NFO Alert: HDFC Mutual Fund Launches Nifty India Consumption Index Fund! 

Conclusion 

The UTI Nifty500 Shariah Index Fund is a passive equity scheme linked to a Shariah-compliant index. It provides diversified exposure within the benchmark’s screening framework. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.