UTI Mutual Fund New Fund Offer : UTI Mutual Fund has launched a new fund offer (NFO). Subscription for this NFO named UTI Quant Fund has started. It is an active equity fund that combines quantitative based predictive modeling with UTI’s long experience and expertise in investment research. The objective of this fund is to provide better returns to the investors than the benchmark, for which the investment strategy will be adjusted according to the market conditions. Subscription in this NFO of UTI Mutual Fund will be open from January 2, 2025 to January 16, 2025.
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Investment Strategy of UTI Quant Fund
UTI Quant Fund is an open-ended equity scheme that will adopt an advanced quantitative investment strategy. The fund will give dynamic weightage to 4 key factors—Momentum, Quality, Low Volatility and Value. Through these factors, this fund will try to manage market volatility and give better risk adjusted returns. The multi-factor allocation model of UTI Quant Fund will adjust its exposure based on market conditions. This strategy makes it a strong option in different market conditions. The back-tested performance of this investment model shows that it has the ability to maintain a better balance between risk and return, making it an attractive option for investors.
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What is special for investors?
The objective of UTI Quant Fund is to invest investors’ money with research based fund management. , The fund’s ‘Integrated Investing’ approach coupled with its ‘Score Alpha’ process and proprietary factor allocation model enables it to find the best investment opportunities amid market complexities. According to Vetri Subramaniam, Chief Investment Officer, UTI AMC, “The objective of this fund is to provide investors with systematic and research-based investment opportunities. “This fund combines the investment process with ‘Score Alpha’ and factor allocation models.”
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Key Features of UTI Quant Fund
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Subscription period in NFO: From 2 January 2025 to 16 January 2025.
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Fund Manager: Sharwan Kumar Goyal
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Investment objective: Long term capital appreciation through investments in equity and equity related instruments.
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Benchmark : BSE 200 TRI.
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Minimum Investment: Initial investment is Rs 1,000 and in multiples of Rs 1 thereafter.
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Plans: Regular and Direct Plan (both with growth option only)
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Entry Load: Nothing.
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Exit Load: 1% on redemption/switch-out within 90 days, nothing thereafter.
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Risk Level: Very High.
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Should you invest?
Back-tested data of UTI Quant Fund has shown that it has the ability to outperform in different market conditions. If you are a long term investor and are thinking of diversifying your portfolio, then this fund can be a good option for you. UTI Quant Fund can be the right choice especially for those investors who are looking for a fund with a research-based, dynamic investment strategy. Due to its flexibility and adaptability, this fund has the potential to give better returns than the traditional approach of investment. However, it is important to note that this is a high-risk investment option, so you should carefully assess your risk appetite before taking any investment decision.
(Disclaimer: The purpose of this article is only to provide information and not to advise investment in any fund. The past returns of any equity fund do not guarantee that it will continue in future. Decisions related to investment should be taken only after taking the opinion of SEBI authorized investment advisor. )