New Delhi : UTI Mutual Fund   has launched UTI Nifty Midcap 150 ETF that provides investors with a unique opportunity to gain exposure to the entire universe of midcap companies through a single investment vehicle. The NFO starts on August 18, 2023, Friday and closes on August 28, 2023, Monday and it will reopen again on September 05, 2023, Tuesday.

In the ETF space, UTI MF currently has 7 ETF products – based on broad large cap based indices (Nifty 50, Sensex, Nifty Next 50 and Sensex Next 50), sectoral thematic index (Nifty Bank) and ETFs based on commodities (Gold & Silver).  To further expand UTI MF products in the overall market-cap coverage, the Company is now launching the ETF in midcap segment with UTI Nifty Midcap 150 ETF.

The UTI Midcap 150 ETF will be a passively managed scheme and the scheme will replicate the performance of the underlying index i.e. Nifty Midcap 150 TRI.

Mr. Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC, commented on the launch, “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.”

Key dates of the New Fund Offer (NFO)

•          Opens on – August 18, 2023, Friday

•          Closes on – August 28, 2023, Monday

•          Allotment of units on – August 30, 2023, Wednesday

•          Re-opens on – September 05, 2023, Tuesday

Key features of the Fund

•          Investment Objective – 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.

However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

•          Fund Manager – Mr. Sharwan Kumar Goyal

•          Benchmark – NIFTY Midcap 150 TRI

•          Minimum Investment – During NFO

Minimum initial investment is ₹ 5,000/- and in multiples of ₹ 1/-.

Investment and Redemption during continuous offer period (after scheme re-opens for repurchase and sale):

•          On the Stock Exchange:

Minimum 1 Unit can be bought / sold in demat form at prevailing prices quoted on the NSE and on any other exchange where they are traded.

•          Direct creation of Units with Fund:

Market Makers / Authorised Participants / Large Investors can create the Units in demat form in exchange against prescribed portfolio deposit and the applicable cash component at NAV based prices at least in one creation unit subject to minimum threshold limit of ₹ 25 crores except to the exempted categories.

Plans Available – The Scheme does not offer any Plans/Options for investment.

Load structure:

Entry Load : Nil (Not Applicable) #

Exit Load : Nil

# In terms of provision no. 10.4.1 a. of para 10.4 under Chapter 10 of SEBI Master Circular for Mutual Funds No. SEBI/HO/IMD/IMD-PoD- 1/P/CIR/2023/74 dated May 19, 2023 no entry load will be charged by the Scheme to the investor effective August 1, 2009

Product Label

UTI Nifty Midcap 150 Exchange Traded Fund (ETF)

(An open-ended scheme replicating/tracking the Nifty Midcap 150 TRI)

THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING*: 

•          Long term capital appreciation

•          Investment in securities covered by Nifty Midcap 150 TRI

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made. # Based on the Index Composition as on July 31, 2023

Note: Product labeling assigned during the NFO is based on an internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.