UTI Mutual Fund has launched two new index funds, the UTI Nifty200 Quality 30 Index Fund and the UTI Nifty Private Bank Index Fund. The new fund offer (NFO) for both funds is open from September 2-16.

Here are the key features of the two UTI Index Funds:

1. UTI Nifty200 Quality 30 Index Fund

The UTI Nifty200 Quality 30 Index Fund is an open-ended mutual fund scheme designed to track the Nifty 200 Quality 30 TRI. This fund will invest in a portfolio of 30 high-quality companies known for their strong financial performance and stability. The fund aims to offer investors a chance to benefit from a focused investment in companies with consistent earnings and solid balance sheets. The minimum initial investment is Rs 5,000, with subsequent investments in multiples of Rs 1. The fund does not charge entry or exit fees and is available in regular and direct plans, offering only growth options.

Sharwan Kumar Goyal, Head of passive, arbitrage & Quant strategies, UTI AMC, said, “The introduction of the UTI Nifty200 Quality 30 Index Fund marks another significant step in UTI Mutual Fund’s mission to empower investors with tailored and robust investment avenues. The fund is designed to provide investors a simple yet effective way to access a portfolio of 30 high-quality companies within the large-cap and midcap universe. It aims to closely mirror the performance of the Nifty 200 Quality 30 Index, offering a cost-effective option for those looking to diversify their investments with a focus on generating better risk-adjusted returns compared to broad market indices.”

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2. UTI Nifty Private Bank Index Fund

The UTI Nifty Private Bank Index Fund aims to track the Nifty Private Bank Index, providing exposure to India’s top 10 private sector banks. This fund targets investors interested in the potential growth of the private banking sector, which has recently faced underperformance but is expected to recover. The minimum initial investment is Rs 5,000, with additional investments permitted in multiples of Rs 1. This fund also has no entry or exit load and is available in regular and direct plans, offering only the growth option.

Kumar added, “The UTI Nifty Private Bank Index Fund offers investors access to a portfolio of 10 leading private banks at a time when sector valuations are below long-term averages while fundamentals remain healthy. This fund is carefully structured to enable investors to closely align with the strong performance of the Nifty Private Bank Index, which has historically shown superior rolling returns compared to broader indices like Nifty Bank and Nifty 50.”

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Who Should Invest?

The UTI Nifty200 Quality 30 Index Fund is appropriate for investors looking for long-term gains comparable to the performance of the Nifty 200 Quality 30 Index. It can be an option for people seeking high-quality enterprises with solid financials and stability.

The UTI Nifty Private Bank Index Fund is designed for investors looking to capitalise on the potential growth of India’s top private sector banks. It offers returns aligned with the Nifty Private Bank Index and is suitable for those focusing on the private banking sector’s recovery and growth.