UTI Mutual Fund introduces UTI S&P BSE Low Volatility Index Fund

UTI Mutual Fund has introduced an open-ended scheme replicating/tracking the S&P BSE Low Volatility Total Return Index (TRI) dubbed as the ‘UTI S&P BSE Low Volatility Index Fund’.

According to the Indian mutual fund company, the new fund offer has opened on 14 February 2022 and will close on 25 February 2022. The scheme will re-open for subscription as well as redemption on an ongoing basis from 7 March 2022, said UTI Mutual Fund.

The scheme’s investment objective is to give returns that, prior to expenses, nearly correspond to the total returns of the securities as represented by the underlying index, subject to error in tracking. The mutual fund company said that there is no guarantee or assurance though that the investment objective of the scheme will be realized.

Sharwan Kumar Goyal — Head – Passive, Arbitrage & Quant Strategies, UTI AMC, who is the Fund Manager for the scheme, said: “Low volatility investing aims to provide better risk adjusted returns over time with less volatility for a relatively smoother ride. Stocks with lower volatility generally tend to hold up better when markets decline rapidly.

“UTI S&P BSE Low Volatility Index Fund, our latest offering in the smart-beta fund category, will offer exposure to a diversified portfolio of relatively stable companies within the Large and Midcap segment, by investing into the constituents of S&P BSE Low Volatility Index.”