January 16, 2024
mayank
UTI Nifty IT ETF details, Fund Portfolio, Fund Returns, Peer Comparison, Mutual Fund Guidance @chanakyamfguidance
Table of Contents:
- NFO Open date, Close date
- NFO Investment Strategy
- NFO Basic Details
- NFO Benchmark Index
- Past Performance of NFO Benchmark Index
- Performance Review of Fund Manager
- Should You Invest in this NFO?
- Invest Online
What is the UTI Nifty IT ETF Open Date, Close Date?
NFO opens on January 17, 2024
NFO will close on January 22, 2024
What is the Investment Strategy?
The scheme seeks to provide returns that, before expenses, corresponds to the total returns of the securities as represented by the underlying index, subject to tracking error.
Basic Details
| Fund House | UTI Mutual Fund |
| Issue Open | 17 January 2024 |
| Issue Close | 22 January 2024 |
| Type | Open-ended |
| Category | Equity: Sectoral-Technology |
| Min. Investment(Rs) | 5,000 |
| Plans | Growth |
| Lock-in Period | NA |
| Exit Load | 0 |
| Riskometer | Very High |
| Benchmark | NIFTY IT TRI |
What is the Benchmark Index of UTI Nifty IT ETF?
Nifty IT index captures the performance of the Indian IT companies. The Nifty IT Index comprises of 10 companies listed on the National Stock Exchange (NSE).
The Nifty IT index is computed using free float market capitalization method with a base date of Jan 1, 1996 indexed to a base value of 1000 wherein the level of the index reflects total free float market value of all the stocks in the index relative to a particular base market capitalization value. The base value of the index was revised from 1000 to 100 with effect from May 28, 2004.
Nifty IT Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products.
Index Variant: Nifty IT Total Returns Index.
Past Performance of Benchmark Index
| Index Returns (%) | QTD | YTD | 1 Year | 5 Years | Since Inception |
| Price Return | 11.74 | 24.08 | 24.08 | 19.72 | 23.32 |
| Total Return | 12.47 | 26.30 | 26.30 | 22.13 |
| Statistics ## | 1 Year | 5 Years | Since Inception |
| Std. Deviation * | 17.77 | 23.06 | 33.62 |
| Beta (NIFTY 50) | 1.12 | 0.82 | 0.97 |
| Correlation (NIFTY 50) | 0.62 | 0.68 | 0.66 |
Fundamentals
| P/E | P/B | Dividend Yield |
| 29.74 | 7.71 | 2.33 |
Top constituents by weightage
| Company’s Name | Weight(%) |
| Infosys Ltd. | 27.17 |
| Tata Consultancy Services Ltd. | 24.79 |
| HCL Technologies Ltd. | 10.01 |
| Tech Mahindra Ltd. | 9.53 |
| Wipro Ltd. | 7.97 |
| LTIMindtree Ltd. | 6.92 |
| Coforge Ltd. | 4.59 |
| Persistent Systems Ltd. | 4.56 |
| MphasiS Ltd | 2.73 |
| L&T Technology Services Ltd. | 1.73 |
Performance Review of the Fund Managers of UTI Nifty IT ETF?
1) Sharwan Kumar Goyal
Education: Mr.Goyal is B.Com, CFA and MMS.
Experience: He began his career with UTI in June 2006 and has 15 years of overall experience in Risk / Fund management. Presently he is working as Equity Fund Manager.
Past Performance of his Schemes
| Fund | UTI Nifty 50 ETF | It’s Benchmark | UTI Nifty Next 50 Exchange Traded Fund | It’s Benchmark |
| 1 Year | 24.17 | 26.44 | 30.78 | 26.44 |
| 3 Year | 16.54 | 17.63 | 18.38 | 17.63 |
| 5 Year | 16.43 | 16.88 | 15.61 | 16.88 |
| 7 Year | 16.10 | 16.38 | — | — |
| 10 Year | – | – | — | — |
2) Ayush Jain
Education: Mr. Jain is B.Com, C.A and CFA (level 1).
Experience: Prior to joining UTI Mutual Fund, he has worked with PMS and Anand Saklecha & Co..
Past Performance of his Schemes
| Fund | UTI Nifty Bank ETF | It’s Benchmark | UTI Nifty200 Momentum 30 Index Fund | It’s Benchmark |
| 1 Year | 14.43 | 13.51 | 45.61 | 26.44 |
| 3 Year | 14.94 | 14.80 | — | — |
| 5 Year | — | — | — | — |
| 7 Year | — | — | — | — |
| 10 Year | – | – | — | — |
Which Company Owns UTI Nifty IT ETF?
UTI Asset Management Company Ltd
Address: UTI Tower, Plot C-1, GN Block, Banrda Kurla Complex, Bandra (East) Mumbai – 400051
Website: http://www.utimf.com
Registrar & Transfer Agent:
KFin Technologies Ltd.
Address: 303, Vamsee Estates, Opp. Big Bazaar, Ameerpet, Hyderabad – 500016
Website: www.karvymfs.com
Is it good to invest in UTI Nifty IT ETF NFO?
Guidance for UTI Nifty IT ETF by Paresh Gordhandas, C.A., Research Analyst.
This fund can be compared to the ICICI Prudential Nifty IT ETF (one year return 27.29%) and Nippon India ETF Nifty IT (one year return 27.27%). Inspite of being launched in August 2020, the ICICI prudential Nifty IT ETF has an AUM of only Rs. 431 crores. This can give you an idea about the attractiveness of IT ETF for investors in general.
An IT ETF NFO has a very narrow mandate and hence becomes more risky compared to flexi cap funds, which in general, give better returns over a longer period of time. Inspite of this, if you wish to invest in an IT Fund, ETF would not be the fund of choice. It would be better to invest in an IT Fund where a Fund Manager has more leeway to choose the company and the amount invested in a particular company. Whereas, in an ETF and Index Fund, the scheme seeks to provide returns that, before expenses, corresponds to the total returns of the securities as represented by the underlying index, subject to tracking error.
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