UTI Mutual Fund (UTI) on August 18, 2023 announced the launch of the UTI Nifty Midcap 150 ETF fund.
The exchange-traded fund (ETF) will be a passively-managed scheme that will replicate the performance of the Nifty Midcap 150 TRI.
UTI Mutual Fund announced in a press statement that the new fund offer (NFO) opened for subscription on August 18, 2023 and will close on August 28, 2023. The allotment of units will begin on August 30, and the fund will reopen for subscription again on September 5, 2023.
The minimum investment amount during the NFO period is Rs. 5,000 and in multiples of Re. 1. There are no entry or exit loads.
On the stock exchange, investors can buy a minimum of one unit in the dematerialised form at prevailing prices quoted on the NSE and on any other exchange where they are traded, it added.
According to UTI Mutual Fund, the investment objective of the scheme is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.
The product is suitable for investors who are seeking long-term capital appreciation and want to invest in securities covered in the Nifty Midcap 150 TRI. The scheme offers investors with a unique opportunity to gain exposure to the entire universe of midcap companies through a single investment vehicle, it said in the press statement.
At present, UTI Mutual Fund has seven ETF products – based on broad large-cap based indices. This is its first offering in the midcap segment.
Sharwan Kumar Goyal, head – passive, arbitrage and quant strategies, UTI Asset Management Company (AMC), said: “The UTI Nifty Midcap 150 ETF enables investors to tap into India’s midcap universe through the Midcap 150 index, offering the potential for attractive returns and exposure to emerging leaders. With its affordability, it serves as a cost-effective avenue to invest in midcap market segment.”
In addition, market makers, authorised participants and large investors can create the units in the demat form in exchange against prescribed portfolio deposit and the applicable cash component at net asset value (NAV) based prices at least in one creation unit subject to minimum threshold limit of Rs. 25 crore, except for the exempted categories.