UTI Mutual Fund To Launch UTI Nifty Alpha Low-Volatility 30 Index Fund

UTI Mutual Fund is set to launch the UTI Nifty Alpha Low-Volatility 30 Index Fund, an open-ended equity fund in the large-cap category. The New Fund Offer (NFO) will be open for subscription from November 11, 2024, to November 25, 2024.

Fund Overview

This is an open-ended equity fund in the large-cap category, designed to closely mirror the Nifty Alpha Low-Volatility 30 Index. The fund’s objective? To deliver returns that track the performance of this index, before deducting expenses – though it’s worth noting there’s no guarantee of achieving the objective. The index itself is a curated basket of 30 stocks, picked from the Nifty 100 and Nifty Midcap 50, selected for their combination of low volatility and high alpha potential.

 Key details of the fund include:

Why Consider Large-Cap Funds?

Large-cap funds like this one often offer more resilience during market downturns compared to funds investing in smaller companies. What sets this fund apart is its alpha + low-volatility combo, offering the potential for higher returns with relatively less volatile action. 

Investment Strategy

The fund’s strategy revolves around replicating the underlying index, ensuring minimal deviation through careful tracking. This approach suits investors looking for a mix of low risk and high return potential, given the stability of large-cap companies combined with the alpha potential of selected mid-cap stocks.

The fund will be helmed by Sharwan Kumar Goyal and Ayush Jain, seasoned professionals in fund management. Sharwan brings over 15 years of experience, while Ayush adds his expertise in portfolio management.

Conclusion: The UTI Nifty Alpha Low-Volatility 30 Index Fund could appeal to investors seeking exposure to a diversified portfolio that balances returns and risk through its alpha and low-volatility approach. With its low minimum investment of Rs.1,000 and a well-defined strategy, it’s an interesting addition to UTI Mutual Fund’s offerings. However, investors must assess their risk appetite before committing, as the fund carries a Very High Riskometer rating.

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.