UTI Nifty 200 Momentum 30 Index Fund NFO

UTI Mutual Fund has announced the launch of UTI Nifty 200 Momentum 30 Index Fund. The scheme would be investing its assets in the securities constituting the Nifty 200 Momentum 30 Index. This fund aims to replicate the performance of its underlying Index. The securities constituting the Nifty 200 Momentum 30 Index are selected based on the normalized momentum score determined on the basis of 6 month & 12-month returns, adjusting its daily price volatility.  

The New Fund Offer (NFO) starts from 18th February 2021 and will end on 4th March 2021. The fund will reopen on 12th March 2021.

Investment Objective 

The investment objective of the scheme is to provide long-term capital growth by investing in the same equity securities & in the same proportion as the Nifty 200 Momentum 30 Index. This index aims to track the performance of Top 30 companies with high momentum in the Nifty200 Index. 

What is Momentum Investing?

In the stock prices, there are two types of trends- Upward Movement and Downward Movement. The upward movement is known as an uptrend and downward movement is known as downtrends It is referred to capture these trends in the stock prices and go along with the opinion of the market with a belief that the stock prices are a true reflection of the investor’s reaction. Momentum Investing believes that stocks that have performed well in the past will continue to perform well and the stocks which have performed poorly will continue to perform poorly. The riding of an established trend is momentum investing.

Features

• The Fund will be investing its assets in the equity securities constituting the Nifty 200 Momentum 30 Index.
• The investments will be made in the same securities & in the same proportions as the underlying index.
• As it aims to track the performance of the Nifty 200 Momentum 30 Index, investors can expect similar returns to that of the underlying index from this fund, less any tracking errors & expenses.

Why invest in the Nifty 200 Momentum 30 Index?

• It has a portfolio that adds the well-performing stocks and removes the non-performing stocks based on pre-defined criteria without the intervention of any individual.
• The reflection of market trends helps in the addition and removal of stocks based on the movements or momentum in the stock prices.
• It helps in reducing the biases by adding performing stocks and removing non-performing stocks on the basis of a pre-defined process.

Who Should Invest?

This scheme is suitable for investors who are -

• Interested in long-term capital growth.
• Interested in passive investment in equity securities of Nifty 200 Momentum 30 Index.
• Interested in earning returns that closely correspond to the returns generated by the Nifty 200 Momentum 30 Index, subject to tracking errors.
• Recommended for investors with an investment horizon of 5 years & above.

About the scheme-