NFO Alert: UTI Mutual Fund Launches New Quantitative Investment-Themed Equity Scheme

Mutual funds offer a lucrative way of investing money. Mutual fund investors are always on the lookout for new investment opportunities. Asset management company, UTI Mutual Fund has provided such an opportunity to investors with the launch of a new fund offer called the ‘UTI Quant Fund’.

Here’s a look at some key things you should know about UTI Quant Fund:

Offer Closure Date

The new scheme was launched on January 2 and will remain open for subscription till January 16. The scheme reopens for subscription on Friday, January 24, 2025

Objective Of The Scheme

The scheme seeks to generate long-term capital appreciation for investors by investing in equity and equity-related instruments by following a quantitative investment theme. The benchmark index for the scheme is the BSE 200 Total Return Index (TRI). The scheme is an open-ended scheme and will not be listed on stock exchanges.

Minimum Subscription Amount

The minimum subscription amount for the scheme is Rs 1000 and in multiples of Rs 1 thereafter. No entry load will be charged for the scheme. However, an exit load of 1 per cent will be charged if the funds are redeemed or switched out within 90 days from the date of allotment. After 90 days no exit load will be charged for redemption or switching out.

Investment in the scheme can be made through both the Regular Plan and the Direct Plan. Investors who invest in the scheme via a Systematic Investment Plan (SIP) will get facilities such as Step up SIP, Any Day SIP, Micro SIP (Only for non-PAN exempt folios) and a Pause facility.

Rules For Redemption

According to the scheme document, investors will be offered subscription and redemption of units at applicable Net Asset Value (NAV) on every business day on an ongoing basis, within five business days from the date of allotment. However, investors must note that the proceeds of redemption will be paid within three working days from the date of redemption.

UTI Mutual Fund said in the offer document that in the event of failure of payment of the redemption or repurchase proceeds within the period specified above it will pay interest to the unitholders at such rate as may be specified by markets regulator Securities Exchange Board of India. The interest which will be paid in such cases is 15 per cent per annum presently.

Who Is The Scheme Suitable For?

As per the scheme document, UTI Quant Fund is suitable for investors who are seeking long-term capital appreciation. The scheme is also suitable for investors seeking investment in a scheme which predominantly follows a quantitative investment theme.

Quantitative investing is a strategy which uses mathematical models, statistical analysis and data analytics to identify investment opportunities and make decisions.

(The article is for information purposes only; please consult your financial planner/s before investing. Outlook Media Group or its employees will not be responsible for any losses incurred.)