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Home >> Blog >> UTI Nifty Private Bank Index Fund NFO: Review Date & NAV

UTI Nifty Private Bank Index Fund NFO: Review Date & NAV

  


UTI Nifty Private Bank Index Fund: Complete Overview

UTI Mutual Fund has launched the UTI Nifty Private Bank Index Fund under its UTI Asset Management Company Limited. It is an open-ended scheme that tracks or replicates the Nifty Private Bank TRI. The NFO date is from September 02 to September 16, 2024, with an NFO price of Rs.5000 and in multiples of Rs.1 thereafter. This NFO Scheme will reopen for continuous sale and repurchase on 24 September 2024.

Today at the UTI NFO, we're dedicated to providing you with useful information on this new NFO, including financial characteristics and any prior performance. Keep reading to know the details of this new fund offer.

 

 

UTI Nifty Private Bank Index Fund NFO Details

This NFO Mutual Fund is suitable for investors who want to achieve returns commensurate with the long-term performance of the Nifty Private Bank Index subject to tracking error and purchasing securities that are part of the Nifty Private Bank Index. The scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met.

The scheme will invest 95-100% of its units in equity and equity-associated securities of companies that are constituents of the Nifty Private Bank Index and 0-5% in Debt and money market products, such as units of liquid mutual funds and Triparty Repo on government securities or treasury bills.

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Fund Overview

The UTI Nifty Private Bank Index Fund NFO minimum subscription amount is Rs.5000 and in multiples of Rs.1 thereof.

Start Date

02 September 2024

End Date

16 September 2024

Allotment Date/Subscription Date/Re-open Date

Scheme reopens on 24 September 2024 for continuous sale and repurchase.

Allotment is to be completed within 5 working days after the closure of the NFO.

VRO Rating

-

Expense Ratio

Nil

Exit Load

Nil

AUM 

Rs.3,25,512.45 crore (as of 30 Jun 2024).

Lock-in

NA

Stamp Duty

0.005% (From July 1st 2020)

Benchmark(s)

Nifty Private Bank TRI

Min. Investment

Rs.5000 and in multiples of Rs.1.

Risk

Very High

Short-Term Capital Gains (STCG)

For less than 2 years, as per Tax Slab.

Long-Term Capital Gains (LTCG)

For more than 2 years, a 12.50% Tax is applicable.

 

How To Invest In The NFO After The Closure Date?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then on 24 September 2024, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “UTI Nifty Private Bank Index Fund” or directly with the AMC or simply click the ‘Banner’ below.

 

The Objective of The Fund

The Scheme aims to deliver returns that, subject to tracking error, match the overall return of the securities as represented by the underlying index before expenses. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset Allocation (% of Total Assets) of the Scheme's portfolio will be as follows:

Types of Instruments

Minimum Allocation (% of Total Assets)

Maximum Allocation (% of Total Assets)

Units in equity and equity-associated securities of companies that are constituents of the Nifty Private Bank Index

95

100

Debt and money market products, such as units of liquid mutual funds and Triparty Repo on government securities or treasury bills.

0

5

 

Peers of UTI Nifty Private Bank Index Fund

Scheme

1Y Return

AUM (Rs.) / Fund Size (Rs.)

Sundaram Financial Services Opportunities Fund Regular-Growth

30.62%

1,409.46 Cr.

SBI Banking & Financial Services Fund Regular-Growth

33.25%

5,979.63 Cr.

Nippon India Banking & Financial Services Fund-Growth

26.66%

6,138.44 Cr.

Since this scheme is a new scheme, hence no comparable data on its past performance against its peers is available.

 

Risk Factors In Such Funds

  • The fund is extremely specialized in a particular industry because it only makes investments in the private banking sector. The performance of the fund may be severely harmed if the private banking industry has difficulties, such as legislative changes, economic downturns, or particular problems impacting private banks.

  •  Like any equity investment, the fund is subject to market risk, which means that changes in the overall value of the market may affect the value of its holdings. Market volatility may be caused by political, economic, or investor mood swings, all of which could have an impact on the fund's results.

  • Interest rate changes notably affect banks. Banks may pay more to borrow money as a result of rising interest rates, which might hurt their bottom line. On the other hand, a drop in interest rates could affect the interest revenue banks generate, which would therefore affect their margins and the fund's performance.

  • The fund invests in private sector banks, but credit risk still exists with these institutions. The value of the fund may be adversely affected if a bank experiences issues satisfying its financial obligations, which may result in a drop in the bank's stock price.

  • Because the banking industry is highly regulated, modifications to laws or rules may have a big effect on how profitable and efficient private banks operate regulations of lending policies, compliance requirements, or capital needs.

 

Past Performance of Index Funds

Index Funds

NAV (Rs.)

Annualised Return

Return / Risk

Invesco India Financial Services Fund-Growth

126.02

39.56%

Very High Risk

Sundaram Financial Services Opportunities Fund Regular-Growth

99.26

30.62%

Very High Risk

SBI Banking & Financial Services Fund Regular-Growth

37.72

33.25%

Very High Risk

 

UTI Nifty Private Bank Index Fund NFO-Who Can Invest?

This Fund is ideal for those who want to achieve returns that are commensurate with the long-term performance of the Nifty Private Bank Index subject to tracking error and purchasing securities that are part of the Nifty Private Bank Index. 

 

UTI Nifty Private Bank Index Fund-Growth Fund Managers

  • Mr. Sharwan Kumar Goyal 

  • Mr. Ayush Jain.

Conclusion

The UTI Nifty Private Bank Index Fund is appropriate for investors who are high risk-tolerant and seek returns that are commensurate with the long-term performance of the Nifty Private Bank Index subject to tracking error and purchasing securities that are part of the Nifty Private Bank Index.  



Frequently Asked Questions

+

Mr. Sharwan Kumar Goyal and Mr. Ayush Jain.

+

The scheme's continuous performance, cost-effectiveness, sizeable assets under management (AUM), and low tracking error have earned it widespread recognition as a respectable investment choice within the Index Fund category.

+

32.03%.

+

NAV expands as Net Assets Value.

+

The minimum investment for the Scheme is Rs.5000 and in multiple of Rs.1 thereafter.



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