Upcoming NFO: UTI Mutual Fund Files Draft Papers with SEBI for UTI Nifty Smallcap 250 Index Fund

On September 4, 2026, The UTI Mutual Fund filed draft papers with SEBI for its upcoming new open-ended index fund, the UTI Nifty Smallcap 250 Index Fund.  

This fund aims to provide investors with a passive investment option that mirrors the Nifty Smallcap 250 Total Return Index (TRI), allowing them to tap into the growth potential of India's small-cap sector. 

Key Features of the Scheme 

The UTI Nifty Smallcap 250 Index Fund is designed to replicate the performance of its underlying benchmark, the Nifty Smallcap 250 TRI.  

The fund offers both Regular and Direct Plans, with only a Growth Option available. Investors can start with a minimum initial application of ₹1,000 and make additional investments in multiples of ₹1.  

The fund does not impose any exit load, making it a flexible choice for investors. 

Objective and Risk Profile 

The fund's primary objective is to achieve returns that closely track the Nifty Smallcap 250 TRI before accounting for expenses, subject to tracking error limitations.  

As a passive investment vehicle, it eliminates active fund manager bias, ensuring that its portfolio aligns with the benchmark index.  

However, due to the inherent volatility of small-cap stocks, the fund is categorised as "Very High Risk" on the product risk-o-meter, making it suitable for investors with a high-risk tolerance seeking long-term capital appreciation. 

Subscription and Redemption Details 

Investors can subscribe to and redeem units directly through the mutual fund house, as the units are not listed on stock exchanges.  

The fund's Net Asset Values (NAV) will be updated daily before 11:00 PM on business days. For more information, including historical data and statutory updates, investors can visit the UTI Mutual Fund Downloads Page. 

Conclusion 

The UTI Nifty Smallcap 250 Index Fund offers a passive investment route into India's small-cap market, tracking the Nifty Smallcap 250 TRI. With a minimum investment of ₹1,000 and no exit load, it caters to investors seeking high-risk, long-term capital growth. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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 scheme-related documents carefully. 

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