UTI MF to launch UTI Nifty Midcap 150 Index Fund

The UTI Nifty Midcap 150 Quality 50 Index Fund—Regular Plan invests in a diverse portfolio of midcap companies that demonstrate quality attributes in an effort to give investors long-term capital appreciation. The fund focuses on businesses that are part of the Nifty Midcap 150 Quality 50 Index and employs a thematic equity approach. The fund, which was introduced on April 11, 2022, gives investors the chance to take advantage of the growth potential of midcap firms with high-quality attributes.

UTI Quality 50 Index Fund for Nifty Midcap 150

As of November 7, 2024, the net asset value (NAV) is Rs 14.67.​ As of September 2024, the total assets under management (AUM) of the fund are roughly Rs 252 crores.​The fund has produced average annual returns of 16.69% since its launch and 32.45% returns during the past year.​

Ratio of expenses: 0.88%​

Exit Load: If you redeem after 30 days, there is no exit load; if you depart before then, there is a 0.10% charge.​

The minimum investment required for a systematic investment plan (SIP) is usually Rs 500, or as determined by each transaction.

Objective of the Fund

The UTI Nifty Midcap 150 Index Fund’s main goal is to deliver returns that, subject to tracking errors, closely match the Nifty Midcap 150 Index’s overall returns.

Allocation Strategy for Assets

The UTI Nifty Midcap 150 Index Fund’s asset allocation strategy aims to closely replicate the underlying index while keeping a modest cash reserve for operational liquidity. 

This is an example of a standard asset allocation strategy for the fund: Equity and Instruments Associated with Equity Representatives of the Nifty Midcap 150 Index include: The Nifty Midcap 150 Index stocks will account for 95% to 100% of the total assets in order to guarantee a strong correlation with the benchmark. Money market products, cash, and other securities: For liquidity management, investor redemptions, and other operational needs, up to 5% may be kept in cash and liquid assets.

Conclusion

The UTI Nifty Midcap 150 Quality 50 Index Fund Regular-GGrowth offers a smart way to gain exposure to quality midcap stocks, combining the growth potential of midcaps with a focus on strong fundamentals and low debt.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.