UTI Mutual Fund launches UTI S&P BSE Low Volatility Index Fund


UTI Mutual Fund (UTI) launched an open-ended schemeUTI S&P BSE Low Volatility Index Fund, replicating/tracking the S&P BSE Low Volatility Total Return Index (TRI).

The S&P BSE Low Volatility Index is designed to track the performance of the 30 companies in the S&P BSE Large-Midcap space with the lowest volatilities, as measured by standard deviation.

The New Fund Offer opened on February 14, 2022 and closes on February 25, 2022. The scheme will re-open for subscription and redemption on ongoing basis from March 07, 2022.

The investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.

Sharwan Kumar Goyal, head – passive, arbitrage & quant strategies, UTI AMC, will be the fund manager for the scheme, which will be benchmarked to S&P BSE Low Volatility TRI.

On the occasion, Goyal, 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.”

“UTI S&P BSE Low Volatility Index Fund, our latest offering in the smart-beta fund category, will offer exposure to a diversified portfolio of relatively stable companies within the large and midcap segment, by investing into the constituents of S&P BSE Low Volatility Index.”, he added.

The minimum initial investment for the scheme is 5,000 and in multiples of 1 thereafter. Subsequent minimum investment under a folio is 1,000 and in multiples of 1 thereafter with no upper limit.

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