Unlocking Exponential Growth: Transform Your Financial Future Today

NFO alert: UTI Mutual Fund has launched a new product called the UTI Quant Fund. The New Fund Offer (NFO) for this open-ended equity scheme is available from January 2, 2025, to January 16, 2025. The fund will follow a quantitative investment approach, seeking to achieve long-term capital growth by investing in equity and equity-related securities.  The benchmark for the fund is the BSE 200 TRI.

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The scheme’s investment objective is to generate long-term capital appreciation by investing in equity and equity-related instruments by following a quantitative investment theme. 

As per the AMC, the fund utilises data-driven techniques for identifying and managing portfolio allocations, catering to investors interested in a disciplined, model-based approach. 

While the fund aims for consistent returns, UTI Mutual Fund does not guarantee or assure the achievement of its investment objectives. The minimum subscription amount for the scheme is Rs 1,000, with subsequent investments allowed in multiples of Re 1. 

There is no entry load, but an exit load of 1% applies if units are redeemed or switched out within 90 days from allotment. After 90 days, no exit load is charged.

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UTI Quant Fund offers only the growth option in both Regular and Direct Plans. The Direct Plan, devised for investors who subscribe directly, boasts a reduced expense ratio for increased cost efficiency. This plan reinvests all generated income, with returns reflected in the NAV. Investors have the flexibility to subscribe and redeem units daily at the prevailing NAV.

Redemption proceeds will be credited within a three-working-day timeframe, with any delays incurring an interest rate of 15% per annum in line with SEBI guidelines.

Although UTI Quant Fund has no plans to list on stock exchanges, it ensures continuous liquidity through its daily subscription and redemption mechanism.

Vetri Subramaniam, Chief Investment Officer, UTI AMC, said: “Our aim is to provide investors with a systematic and research-driven way to navigate market complexities and make more informed investment decisions. This fund uses an ‘integrated investing’ approach combining our investment process Score Alpha with our proprietary Factor Allocation Model. The UTI Multi Asset Allocation fund has adopted this process for management of its equity portfolio from April 2022 and we are happy to now offer this expertise and approach in an equity fund.”

Mirae Asset Small Cap Fund

Mirae Asset Mutual Fund will be launching the Mirae Asset Small Cap Fund, an open-ended equity scheme focused on investing in small cap stocks. The new fund offer (NFO) for this scheme will be available for subscription starting on January 10 and closing on January 24. The scheme will then be open for continuous sale and repurchase beginning on February 3. Managed by Varun Goel and Siddharth Srivastava, the small cap fund will be benchmarked against the Nifty Small Cap 250 Total Return Index.

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The primary investment objective of the scheme is to achieve capital appreciation by predominantly investing in small-cap stocks. Additionally, the fund manager may consider other equity and equity-related securities to optimize portfolio construction for potential growth.

SWP option under the scheme

Units allotted (including Switch-in/STP-in) within 365 days from the date of allotment will not incur any exit load if 15% of the allotted units are redeemed.
Any redemptions beyond this limit within the first 365 days from the date of allotment will be subject to an exit load. Redemption of units will be based on the First In First Out Basis (FIFO). Exiting within 1 year (365 days) from the date of allotment will incur an exit load of 1% of the applicable NAV, while exiting after 1 year (365 days) will have no exit load.

Redemption Details: For investors who have not chosen SWP under the plan (including Switch out, STP out):
An exit load of 1% will be applicable if redeemed within 1 year (365 days) from the date of allotment.
There will be no exit load if redeemed after 1 year (365 days) from the date of allotment.

Investment details: The minimum investment amount is Rs 5,000, with increments of Re 1 thereafter. For investments made through SIP, the minimum investment amount is Rs 99, with increments of Re 1 thereafter.

Investment strategy: The scheme’s asset allocation will prioritise investing 65-100% in equity and equity related securities of smallcap companies, 0-35% in equity and equity related securities of companies other than smallcaps, 0-35% in debt and money market instruments, 0-35% in overseas mutual funds schemes/ ETFs/foreign securities, and 0-10% in units issued by REITs and InvITs.

The Investment Manager will focus on selecting equity securities through a bottom–up, stock–by–stock approach. The goal is to construct a portfolio consisting of robust growth companies that represent our best investment opportunities at all times.