The Nifty200 Momentum 30 Index aims to track the performance of 30 high momentum stocks from Nifty 200 index.
UTI Mutual Fund (UTI) has launched a new open-ended Index scheme replicating/tracking the Nifty200 Momentum 30 Index – ‘UTI Nifty200 Momentum 30 Index Fund’. The New Fund Offer opened on February 18, 2021, and will close on March 04, 2021. The scheme will re-open for subscription and redemption on an ongoing basis from March 12, 2021.
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 which is the Nifty200 Momentum 30 Index, subject to tracking error. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
The Nifty200 Momentum 30 Index aims to track the performance of 30 high momentum stocks from Nifty 200 index. The Momentum Score for each stock is based on recent 6-month and 12-month price return, adjusted for volatility. Stock weights are based on a combination of the stock’s Normalized Momentum Score and its free-float market capitalization.
This product is suitable for investors who are seeking any capital growth in tune with the index returns through passive investment in equity instruments of Nifty200 Momentum 30 Index.
The minimum initial investment amount is Rs. 5,000. The scheme offers Regular and Direct Plan but both the plans offer only Growth Option.
Sharwan Kumar Goyal, Fund Manager of the scheme said, “With the launch of UTI Nifty200 Momentum 30 Index Fund, we are introducing a smart-beta or factor-based strategy. Empirical research done globally suggests that momentum strategy has performed well over in long term. Globally as well as in India, momentum investing is well accepted investment style. Currently, this investing style is available in India through alternative investment vehicles. We are introducing the same under Index Fund route for the first time in India. The scheme is a low-cost index fund which tracks the Nifty200 Momentum 30 Index passively and endeavors to achieve return equivalent to the underlying index while minimizing tracking error.”
One may use any of the following features available in UTI Nifty200 Momentum 30 Index Fund:
(i) Systematic Investment Plan (SIP)
(a) Step up facility
(b) Any Day SIP
(c) Micro SIP
(ii) Systematic Withdrawal Plan (SWP)
(iii) Systematic Transfer Investment Plan (STRIP)
(iv) Flexi Systematic Transfer Investment Plan (Flexi STRIP)