UTI Mutual Fund Launches UTI Quant Fund

UTI Mutual Fund has announced the launch of the UTI Quant Fund, an open-ended equity scheme based on a quantitative investment theme. The New Fund Offer (NFO) will open on January 2, 2025, and close on January 16, 2025, with continuous sales and repurchases starting from January 24, 2025. The fund aims to provide long-term capital appreciation through systematic and research-driven equity investments.

Key Features of UTI Quant Fund

The UTI Quant Fund primarily focuses on equity investments using a quantitative investment approach. The fund will allocate 80-100% of its assets to equity and equity-related instruments based on the quantitative theme, 0-20% in equity instruments not following the theme, 0-20% in debt and money market instruments, and 0-10% in REITs and InvITs.

The fund will be benchmarked against the BSE 200 TRI and managed by experienced fund managers Sharwan Kumar Goyal and Deepesh Agarwal. Investors can start with a minimum initial investment of ₹1,000, with additional investments in multiples of ₹1. SIP options include daily, weekly, and monthly SIPs starting at ₹500, and quarterly SIPs at ₹1,500. An exit load of 1% is applicable if redeemed or switched out within 90 days of allotment, and no exit load applies thereafter.

Investment Strategy and Approach

The UTI Quant Fund follows an ‘integrated investing’ approach, which combines the proprietary Score Alpha model and Factor Allocation Model. This approach which was previously adopted for the UTI Multi Asset Allocation Fund’s equity portfolio since April 2022, emphasises systematic and evidence-based strategies for navigating market complexities.

Chief Investment Officer Vetri Subramaniam and fund manager Sharwan Kumar Goyal have highlighted that the fund is designed to balance risk and return, leveraging dynamic fund allocation to capture market opportunities while managing risks. This thematic fund offers flexibility and adaptability that traditional investment methods may not provide.

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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 scheme-related documents carefully.