UTI Mutual Fund Filed Draft for Nifty 500 Shariah Index Fund

UTI Mutual Fund has filed draft papers with SEBI for the UTI Nifty500 Shariah Index Fund. It is an open-ended index scheme that mirrors the performance of the Nifty500 Shariah Total Return Index (TRI). The objective is to provide returns corresponding to the index, before expenses, subject to tracking error.

Asset Allocation

The scheme will invest 95-100% of its assets in securities that are part of the Nifty500 Shariah Index. Up to 5% of assets may be held in debt or money market instruments, including units of liquid mutual funds. Equity derivatives may be used for short durations to manage portfolio rebalancing or index changes.

Benchmark and NAV

The scheme will be benchmarked against the Nifty500 Shariah TRI. Net Asset Value (NAV) will be declared by 11 p.m. on every business day and published on the UTI Mutual Fund and AMFI websites. Redemption proceeds will be paid within three working days.

Plans, Options, and Costs

The fund will offer Regular and Direct Plans, both under the Growth option only. Minimum investment during the New Fund Offer (NFO) and thereafter is ₹1,000, with further investments allowed in multiples of ₹1. The minimum SIP amount is ₹500 daily, weekly, or monthly, and ₹1,500 quarterly.

No entry or exit load will be charged. Annual recurring expenses are capped at up to 1% of daily net assets.

Fund Management

The scheme will be managed by Sharwan Kumar Goyal, Equity Fund Manager and Head of Passive, Arbitrage & Quant Strategies at UTI AMC, along with Ayush Jain, Assistant Fund Manager. Both manage multiple passive and index funds within UTI’s portfolio.

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Investor Services

The fund will provide facilities such as Systematic Investment Plans (SIP), Systematic Withdrawal Plans (SWP), and Systematic Transfer Plans (STP). Applications can be made through UTI service centres, distributors, or directly on the AMC website.

Conclusion

The draft filing marks the addition of a Shariah-based index offering to UTI’s product lineup, designed to track the Nifty500 Shariah Index in a passive structure.

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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.