UTI MF NFO: opportunity to invest in manufacturing sector… that too without lock-in and exit charge; Start with 1000 rupees

Uti mf: UTI Mutual Fund has launched its new Open-Anded Equity Scheme ‘UTI Nifty India Manufacturing Index Fund-Regular Plan’. The fund tracks the Nifty India Manufacturing TRI, which shows the performance of companies in India’s manufacturing sector. Its purpose is to give returns according to the performance of the index, although there may be some difference due to the tracking error.

The New Fund Offer (NFO) was launched on 28 January 2025 and will be closed on 10 February 2025. The specialty of this scheme is that it does not have any lock-in period nor exit load. This means that investors can withdraw their money anytime, and no additional fee will have to be paid for it.

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UTI MF: Minimum Investment and SIP information

The minimum investment in NFOs and plans is ₹ 1,000, after which an investment can be made in multiples of ₹ 1. The minimum amount for re -investment in Folio is also ₹ 1,000 and can be invested in multiples of ₹ 1. There is no limit of maximum investment. The units will be allotted applied stamp duty and transactions only after deducting the charge.

The minimum amount for Daily, Weekly and Monthly SIP is ₹ 500 in the options of SIP (Systematic Investment Plan), while ₹ 1,500 has been fixed for quarterly SIPs. Both cases have an investment possible in multiple ₹ 1 multiples.

UTI MF: Good options for these people

UTI Nifty India Manufacturing Index Fund is an open-ended scheme that tracks or replicates the Nifty India Manufacturing Tri. This fund is for investors who want longer returns, which will be based on the performance of the Nifty India Manufacturing Index. However, it may have a risk of trekking error. Through this scheme, you can invest in securities included in the Nifty India Manufacturing Index.

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The risk-o-meter of this scheme is known as “UTI Nifty India Manufacturing Index Fund”, while its benchmark is based on the risk-o-meter “Nifty India Manufacturing Tri”.

This new fund of UTI can be a good option for investors who are exploring possibilities in India’s manufacturing sector and want to connect their portfolio to this sector.

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UTI MF: Liquidity and Listing Information

This scheme will offer investors to buy and sell units according to the current NAV (Net Asset Value) on every business day. It is an open-ended scheme, which provides continuous purchase and redemption of units by mutual funds.

There is no plan to list the units of this scheme on a stock exchange. However, mutual funds can decide to listen to these units on the stock exchange in future if needed.

UTI MF: Management and support of funds

This fund will be managed by Sharwan Kumar Goyal, who has an experience of more than 18 years. He is considered an expert of passive and quantitative strategy.

KFIN Technologies Limited will support the operations of the fund, which is its registrar and transfer agent.

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What are open ended schemes?

Mutual funds can be divided into three types depending on their structure: open ended funds, clown ended funds, and interval funds. Open ended funds are the most popular and generally the first choice of investors.

Meaning of open ended funds

Open ended mutual funds are often synonymous with mutual funds. The specialty of these funds is that their units are not traded on the stock exchange. Also, there is no limit to the number of units in these funds.

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Investors can buy or sell units from Fund House on any working day. Units are purchased and sold on the existing net asset value (NAV) of that scheme.

NAV is fixed based on the performance of investments included in that fund. The special thing is that these funds do not have any definite maturity period.

Learn about index funds-

Index funds are a type of mutual funds that follow a particular index (eg Nifty 50 or Sensex). The purpose of these funds is to copy the performance of that index. This means that when the index increases, your fund also increases, and when the index falls, the fund performance is the same.

It is easy to invest in index funds as you do not need to choose separate shares. This fund puts your money in shares of all companies involved in the index. The cost of these funds is also low because they are passive investment, that is, they do not need much management.

The risk in index funds is also low as they keep the portfolio balanced by investing money in different sectors and companies. These are the right choice for those who do not have technical knowledge of the stock market or who want to get good returns in long periods with low risk.

Index funds like Nifty 50, Sensex, Nifty Next 50 and Nifty Midcap 150 are quite popular in India. These funds are considered a good option for long -term investment and gives a chance to grow your investment along with market growth.

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