UTI Mutual Fund (UTI) has launched a brand new open-ended Index scheme replicating/monitoring the Nifty200 Momentum 30 Index – ‘UTI Nifty200 Momentum 30 Index Fund’. The New Fund Offer opened on February 18, 2021, and can shut on March 04, 2021. The scheme will re-open for subscription and redemption on an ongoing foundation from March 12, 2021.
The funding goal of the scheme is to offer returns that, earlier than bills, intently correspond to the entire returns of the securities as represented by the underlying index which is the Nifty200 Momentum 30 Index, topic to monitoring error. However, there will be no assurance or assure that the funding goal of the scheme can be achieved.
The Nifty200 Momentum 30 Index goals to trace the efficiency of 30 excessive momentum shares from Nifty 200 index. The Momentum Score for every inventory relies on current 6-month and 12-month worth return, adjusted for volatility. Stock weights are based mostly on a mix of the inventory’s Normalized Momentum Score and its free-float market capitalization.
This product is appropriate for traders who’re in search of any capital development in tune with the index returns by means of passive funding in fairness devices of Nifty200 Momentum 30 Index.
The minimal preliminary funding quantity is Rs. 5,000. The scheme provides Regular and Direct Plan however each the plans provide solely Growth Option.
Sharwan Kumar Goyal, Fund Manager of the scheme stated, “With the launch of UTI Nifty200 Momentum 30 Index Fund, we are introducing a smart-beta or factor-based strategy. Empirical research done globally suggests that momentum strategy has performed well over in long term. Globally as well as in India, momentum investing is well accepted investment style. Currently, this investing style is available in India through alternative investment vehicles. We are introducing the same under Index Fund route for the first time in India. The scheme is a low-cost index fund which tracks the Nifty200 Momentum 30 Index passively and endeavors to achieve return equivalent to the underlying index while minimizing tracking error.”
One might use any of the next options obtainable in UTI Nifty200 Momentum 30 Index Fund:
(i) Systematic Investment Plan (SIP)
(a) Step up facility
(b) Any Day SIP
(c) Micro SIP
(ii) Systematic Withdrawal Plan (SWP)
(iii) Systematic Transfer Investment Plan (STRIP)
(iv) Flexi Systematic Transfer Investment Plan (Flexi STRIP)