UTI Mutual Fund (UTI) today launched two new schemes, UTI Nifty Exchange Traded Fund and UTI Sensex Exchange Traded Fund. The new fund offers have opened from Aug. 24, 2015 and will close on Aug. 26, 2015. The schemes will be traded in BSE and NSE from Sept.3, 2015.
UTI Nifty Exchange Traded Fund (UTI Nifty ETF) and UTI Sensex Exchange Traded Fund (UTI Sensex ETF) are open ended Exchange Trade Funds. Exchange Traded Funds (ETFs) provides exposure to an index or a basket of securities that trade on the exchange like a single stock.
UTI Nifty Exchange Traded Fund will invest in securities which are constituents of CNX Nifty Index and in Money Market Instruments in accordance with the asset allocation pattern.
UTI Sensex Exchange Traded Fund will invest in securities, which are constituents of S&P BSE Sensex Index and in Money Market Instruments in accordance with the asset allocation pattern.
The fund manager of both the schemes is Kaushik Basu.
Suraj Kaeley, group president (sales and marketing), UTI AMC said, ''ETFs are highly flexible and can be used as a tool for gaining instant exposure to equity markets. UTI Nifty ETF and UTI Sensex ETF have a number of benefits such as diversification, low cost and transparency. Investors can invest in a diversified portfolio representative of broad Indian economy and create a long term 'Core' holding in their portfolio. UTI Nifty ETF and UTI Sensex ETF are amongst one of the lowest cost ETFs in the country.''
''ETFs launched by UTI are well suited for Institutions and PF Trusts who over a period of time will benefit from the growth in the Indian Economy,'' he added.