UTI Mutual Fund will be launching a new mutual fund scheme this June – UTI Nifty Next 50 Index FundThe NFO (new fund offer) for the scheme will open for subscription on 8th June 2018 and close on 22nd June 2018.

It is an open-ended scheme replicating/tracking the Nifty Next 50 Index. This Index is made up of the 51st to 100th companies based on free float market capitalization of stocks listed on NSE. These are primarily large companies which have exhibited their strength and are potential contenders for Nifty 50.

Few facts about the fund

Name of the Scheme UTI Nifty Next 50 Index Fund
NFO Launch Date 8 June 2018
NFO Closing Date 22 June 2018
Fund Type Equity Index fund
Nature Open-ended fund
Mutual Fund House UTI Mutual fund
Benchmark Nifty Next 50
Options Growth Option
Loads  Entry Load – NIL | Exit Load – NIL

 

How to invest in UTI Nifty Next 50 Index Fund – Direct Plan NFO 2018

Log in to your Groww account. If you are a new user, sign up first– if you are  KYC verified it will take a few seconds otherwise it might take 2-3 days. Once you have your Groww account you need to follow the steps below:

  • Decide the amount you would like to invest in UTI Nifty Next 50 Index Fund – Direct Plan NFO.
  • Email Groww support on support@groww.in with a request or call/WhatsApp on 9108800604.

UTI Nifty Next 50 Index Fund – Direct Plan Objective

The objective of this scheme is to provide returns, that before expenses closely correspond to the total returns of the securities as represented by the underlying index, subject to the tracking error.

However, there is no assurance that the investment objective of the scheme will be realized and the scheme does not guarantee any returns.

UTI Nifty Next 50 Index Fund – Direct Plan NFO: Fund Category

UTI Nifty Next 50 Fund – Direct Plan basically comes in the Others fund category. In Others it falls in the category of Index funds.

An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a market index. This fund invests a minimum of 95% of total assets in the securities of a particular index (which is being replicated/tracked).

Hence, UTI Nifty Next 50 Index Fund – Direct Plan is a suitable option for investors who are seeking to invest at low to medium levels of risk. In Index funds risk is reduced due to diversification.

Also, UTI Nifty Next 50 Index Fund – Direct Plan is an open-ended mutual fund scheme. This means that the investors can buy units from, or sell units to the fund house at any time, thereby making the corpus of the fund variable. These funds also do not have a fixed maturity period.

UTI Nifty Next 50 Index Fund – Direct Plan NFO: Plans Available

The scheme offers the following plans: Regular Plan and Direct Plan. 

Both the regular and direct versions of any mutual fund are the exact same fund, run by the same fund manager investing in the same stocks, and bonds.

The difference is that in case of direct mutual funds, there is no broker/distributor commission. This means, as an investor, you get higher returns from the direct funds than the regular ones.

Read More: Direct vs Regular Mutual Funds Examples: Returns of Top 10 Funds Compared

This scheme offers only Growth option. This means that you are allowing the mutual fund to reinvest your money instead of distributing dividends.

UTI Nifty Next 50 Index Fund – Direct Plan NFO: Fund Category

The asset allocation of this index fund is as follows:

Types of Instruments Normal Allocation (% of Net Assets) Risk Profile
Stocks of a particular Index  95-100% Low to medium

(Depends on the Index)

Other Stocks 0-5% Depends on the stocks

UTI Nifty Next 50 Index Fund – Direct Plan NFO: Benchmark

This fund will be benchmarked to the Nifty Next 50 index.

Features of the Index are:

  • This index is made up of the 51st to 100th companies based on free float market capitalization of stocks listed on NSE.
  • These are primarily large companies which have exhibited their strength and are potential contenders of Nifty 50.

UTI Nifty Next 50 Index Fund – Direct Plan NFO: Minimum Investment

Minimum initial investment is Rs 5000/-. Subsequent minimum investment under a folio is Rs 1000/- and in multiples of Re 1/- thereafter with no upper limit.

UTI Nifty Next 50 Index Fund: Key Reasons to Invest

The key advantages of this scheme are;

  • It is relatively a less risky investment as you are basically investing in an index which makes your portfolio highly diversified. This diversification reduces risk to a great extent.
  • It is a direct scheme which means that there is no brokerage or commission involved. Hence your net returns are higher.
  • It is a Growth scheme which means that you have a chance to earn returns on the amount which would have otherwise been distributed as dividends.

Other Options

If you think UTI Nifty Next 50 Index Fund is not good enough for you, you can invest in other, already existing Index funds. Click here to know about the best index funds for 2018.

Happy investing!

Disclaimer: the views expressed here are of the author and do not reflect those of Groww.