UTI Mutual Fund introduces UTI S-;P BSE Low Volatility Index Fund

15 Feb 2022 , 04:09 PM

In its press release, UTI AMC Ltd. announced that the fund house will be launching an open-ended scheme that will track the S&P BSE Low Volatility Total Return Index (TRI). This new fund will be called as UTI S&P BSE Low Volatility Index Fund’.

Fund’s NFO opened on February 14, 2022, and is expected to close on February 25, 2022. However, the scheme will be fully operative from March 7, 2022.

This scheme envisages providing returns that correspond to the total returns as provided by the underlying index, subject to expenses and tracking error. However, the fund neither guaranteed nor assure the achievement of its scheme’s objectives.

Commenting in the new fund offer, Mr. Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC, said, “Low volatility investing aims to provide better risk adjusted returns over time with less volatility for a relatively smoother ride. Stocks with lower volatility generally tend to hold up better when markets decline rapidly.”

Some of the features of NFO includes:

1. The scheme shall be opened to non-resident Indians, Banks, resident individuals, Financial Institutions, eligible Trusts, and Foreign Portfolio Investor (FPI) etc.
2. During the NFO period, the schemes will be sold at a face value of Rs10 per piece.
3. Minimum initial investment required is Rs5000.