New Delhi: UTI Mutual Fund (UTI) launches an open-ended scheme replicating / tracking Nifty50 Equal Weight Total Return Index (TRI) UTI Nifty50 Equal Weight Index Fund.
The New Fund Offer is open from May 22, 2023 and closes on June 05, 2023.
The scheme will re-open for subscription and redemption on ongoing basis from June 09, 2023.
The equal weight index is a stock index that assigns equal value to all the stocks irrespective of their market capitalization in the index.
The indexs total value is determined by the value of each stock as if all of them carry equal importance or value in the calculation if the index.
The investment objective of the scheme is to seek to provide returns that, before expenses, correspond to the total return of the securities as represented by the underlying index, subject to tracking error. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
Sharwan Kumar Goyal is the dedicated Fund Manager for UTI Nifty50 Equal Weight Index Fund.
Sharwan Kumar Goyal, Head Passive, Arbitrage Quant Strategies, UTI AMC, commented on the launch, Equal weight strategies are among the tested concepts across the global smart-beta landscape. An equal weighted index provides more diversification when compared to the market cap weighted index. The Nifty50 Equal Weight Index provides the investors with a balances sectoral representation when compared to the Nifty50 Index.
He further adds, UTI Nifty50 Equal Weight Index Fund provides the investors with exposure to the Nifty50 Index companies but with an equal weight, i.e., ~2% to each stock.
