UTI Nifty India Manufacturing Index Fund - Direct (G) : NFO Details

UTI Nifty India Manufacturing Index Fund - Direct (G) Sharwan Kumar Goyal and Ayush Jain, both seasoned professionals, have recently joined UTI Mutual Fund as Equity Fund Managers on January 28, 2025. Mr. Goyal, a B.Com graduate and CFA holder with an MMS, brings 15 years of experience in risk and fund management, having started his career with UTI in 2006. Mr. Jain, a B.Com graduate, Chartered Accountant, and CFA Level 1, has prior experience with PMS and Anand Saklecha & Co. UTI Mutual Fund, headquartered at UTI Tower, Bandra Kurla Complex, Mumbai, operates with KFin Technologies Ltd. as its Registrar & Transfer Agent. The fund house is launching an open-ended equity thematic fund, with investments starting at ₹1,000, open from January 28 to February 10, 2025.

Details of the NFO: UTI Nifty India Manufacturing Index Fund - Direct (G)

Investment Objective and Strategy

Objective:

The investment objective of the UTI Nifty India Manufacturing Index Fund - Direct (G) is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of indexes. 

However, there is no assurance that the objective of the scheme will be achieved.

Investment Strategy:

The UTI Nifty India Manufacturing Index Fund - Direct (G) seeks to provide returns that, before expenses, corresponds to the total return of the securities as represented by the underlying index, subject to tracking error.

What Are the Risks Associated with UTI Nifty India Manufacturing Index Fund - Direct (G)?

Investing in the UTI Nifty India Manufacturing Index Fund – Direct (G) carries certain risks inherent to index funds. The primary risk is market risk, as the fund’s performance is directly linked to the Nifty India Manufacturing TRI, which can fluctuate based on market conditions. Additionally, tracking error, which is the difference between the fund’s returns and the index it aims to replicate, poses a risk. Other risks include sector-specific risks, as the fund focuses on manufacturing companies, which may be affected by economic downturns, regulatory changes, or sector-specific challenges. There is no guarantee of achieving the investment objective, and investors may experience periods of negative returns.

What Type of Investor Should Invest in UTI Nifty India Manufacturing Index Fund - Direct (G)?

The UTI Nifty India Manufacturing Index Fund – Direct (G) is suitable for investors looking for long-term capital appreciation through exposure to the manufacturing sector. It is ideal for those who prefer a passive investment strategy, as the fund seeks to replicate the performance of the Nifty India Manufacturing TRI with minimal active management. This NFO is well-suited for investors with a moderate to high-risk appetite, given the potential volatility associated with sector-specific index funds.

Investors who believe in the growth potential of India’s manufacturing sector and are willing to endure short-term market fluctuations for potential long-term gains should consider this fund. Additionally, those looking to diversify their portfolio with sector-specific exposure without the need for active stock picking may find this fund appealing. It is also suitable for investors who seek low-cost investment options, as index funds typically have lower expense ratios compared to actively managed funds. However, conservative investors or those with short-term financial goals may want to explore other investment options with lower risk profiles.