Upcoming NFO: UTI Mutual Fund Files Draft for BSE India Defence Index Fund

UTI Mutual Fund has filed the Scheme Information Document (SID) for the UTI BSE India Defence Index Fund, an open-ended index fund tracking the BSE India Defence Total Return Index (TRI).  

The scheme will seek to generate returns corresponding to the underlying index, before expenses and subject to tracking error. There is no assurance that the objective will be achieved.  

Portfolio Allocation 

The fund will be managed passively and will invest at least 95% of its total assets in securities forming part of the BSE India Defence TRI. 

The balance can be held in money market instruments, treasury bills, government securities, cash equivalents or liquid mutual funds to meet liquidity requirements.  

The scheme may also use index futures, options and other permitted derivatives for portfolio balancing. The portfolio will be rebalanced to account for changes in the index and movements in the weights of its constituents.  

Index Composition 

The underlying index takes companies from the BSE 1000 that represent the defence theme. Constituents are weighted according to float-adjusted market capitalisation, subject to capping rules.  

Core Defence companies from specified basic industries are directly included, while Non-Core Defence companies must meet additional criteria, including membership of the Society of Indian Defence Manufacturers and a defence-related product test.  

The index must have at least 10 stocks. For a sectoral or thematic index, no single stock can account for more than 35%, while the combined weight of the top three constituents cannot exceed 65%.  

Constituents must also have a trading frequency of at least 80% and an average impact cost of 1% or less over the previous six months.  

Investment Terms 

The minimum initial investment is ₹1,000, with subsequent investments starting at ₹1,000. Daily, weekly, and monthly SIPs have a minimum of ₹500, while the quarterly SIP minimum is ₹1,500. Entry load is not applicable, and exit load is nil.  

The fund will be managed by Sharwan Kumar Goyal, with Ayush Jain as Assistant Fund Manager. The NFO price is ₹10 per unit, while the NFO period will run for a minimum of three working days and a maximum of 15 calendar days.  

Read More: Upcoming NFOs: 5 Mutual Funds and One SIF Open for Subscription This Week (September 7-11, 2026)! 

Conclusion 

The filing outlines a passive fund focused on companies included in the BSE India Defence TRI, with most of the portfolio required to remain invested in index constituents. 

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.