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

UTI Mutual Fund has launched an open-ended scheme tracking the S&P BSE Low Volatility Total Return Index (TRI) – UTI S&P BSE Low Volatility Index Fund. The New Fund Offer is currently open and will close on February 25. The scheme will re-open for subscription and redemption on an ongoing basis from March 07.

Minimum initial investment is Rs 5,000/- and in multiples of Re. 1 thereafter. Subsequent minimum investment under a folio is Rs 1,000 and in multiples of Re 1 thereafter with no upper limit. The scheme offers Regular Plan and Direct Plan.

The fund will be managed by Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC. 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.

“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,” said Sharwan Kumar Goyal.

“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.

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