Upcoming NFO: UTI Mutual Fund Files Draft for UTI Nifty Healthcare Index Fund

UTI Mutual Fund has filed the Scheme Information Document (SID) for the UTI Nifty Healthcare Index Fund, an open-ended index fund designed to replicate or track the Nifty Healthcare Total Return Index (TRI).  

The SID is dated September 7, 2026, and states that the scheme is a new product from UTI Mutual Fund.  

Scheme to Track Nifty Healthcare TRI 

The fund will follow a passive investment approach, with its performance benchmarked against the Nifty Healthcare TRI. Its investment objective is to generate returns that, before expenses, correspond to the total return of securities represented by the underlying index, subject to tracking error.  

The document also states that there is no assurance that the investment objective will be achieved.  

Up to 100% in Index Constituents 

Under normal circumstances, 95% to 100% of the scheme's total assets will be invested in securities covered by the Nifty Healthcare TRI. The remaining 0% to 5% may be held in money market instruments, government securities, Treasury Bills, cash and cash equivalents or units of liquid mutual funds.  

The scheme will seek to maintain the same stock weightings as the underlying index. Portfolio rebalancing will take place when there are changes in index constituents or when required to maintain replication.  

The SID states that the portfolio is to be rebalanced within seven calendar days following changes in index constituents, subject to applicable regulations. 1791355101662 

Investment Details 

The NFO will offer units at ₹10 each, although the opening and closing dates have not been filled in the draft. The NFO will remain open for at least three working days and not more than 15 calendar days.  

The minimum initial investment is ₹1,000, while the minimum daily, weekly, and monthly SIP amount is ₹500. Quarterly SIPs require a minimum of ₹1,500. There is no exit load.  

Read More: Upcoming NFOs: 3 Mutual Fund Schemes Open from October 5, 2026! 

Conclusion 

The proposed fund will provide a passive route to the healthcare sector through the Nifty Healthcare TRI. The draft sets out a minimum 95% allocation to index constituents, with the remaining portion available for liquidity management. 

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.