February 4, 2026
RA Jainee
UTI Nifty500 Shariah Index Fund – Direct | Growth
📌 Fund Snapshot & Key Details
| Particulars | Details |
|---|---|
| Fund House | UTI Mutual Fund |
| Scheme Type | Open-ended |
| Category | Equity: Flexi Cap (Shariah Compliant) |
| Benchmark | NIFTY 500 Shariah TRI |
| NFO Opens | 05 February 2026 |
| NFO Closes | 18 February 2026 |
| Plan / Option | Growth |
| Minimum Investment (Rs.) | 1000 |
| Exit Load | 0 |
| Lock-in Period | NA |
| Riskometer | Very High |
| Registrar | KFin Technologies Ltd. |
⚖️ Sahifund NFO Review
PLUS
• Shariah-compliant equity exposure across large, mid and small caps
• Broad diversification with over 200 stocks reduces single-stock risk
• Passive structure ensures transparency and low portfolio churn
• Zero exit load allows flexibility and rebalancing ease
• Suitable for investors seeking ethical / faith-based investing without sacrificing equity growth
MINUS
• Shariah filters exclude key sectors like banking, NBFCs and insurance
• Short-term underperformance possible versus Nifty 50 / Nifty 500 during financial-sector rallies
• Moderate-to-high valuations (P/E ~27.4) reduce margin of safety
• Monthly rebalancing may increase tracking complexity
• Not a substitute for conventional diversified equity funds
Sahifund View (Decisive Line)
A diversified Shariah-compliant passive fund, ideal for long-term investors seeking ethical equity exposure with broad market participation.
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⏱️ Last Updated: 6 February 2026, 10.00 AM
📊 Sahifund Interpretation of the Benchmark
NIFTY 500 Shariah TRI
The NIFTY 500 Shariah TRI is derived from the NIFTY 500 universe, including only stocks that comply with Shariah principles based on business activities and financial ratios. The index is reviewed monthly, ensuring continued compliance.
Benchmark Behaviour Snapshot
• Long-term TRI returns (~12.1% since inception) reflect steady but selective equity participation
• Lower exposure to leveraged businesses improves balance-sheet quality
• Beta below 1 over longer periods indicates relatively defensive behaviour
• Performance can diverge materially from broader indices due to exclusion of financials
Sahifund Insight:
This benchmark rewards discipline and long-term holding, but investors must accept phases of relative underperformance when excluded sectors outperform.
🧠 Investment Strategy – Explained Simply
The scheme aims to replicate the NIFTY 500 Shariah Total Returns Index, subject to tracking error.
In simple terms:
➡️ Investors get diversified equity exposure that adheres strictly to Shariah principles without active stock selection.
👤 Sahifund Interpretation of Fund Managers & Their Performance
Sharwan Kumar Goyal
Over 15 years of experience at UTI in equity fund management and risk roles. Strong expertise in index management, portfolio construction and compliance.
Ayush Jain
Background in PMS and accounting roles adds depth in execution, monitoring and regulatory adherence.
Sahifund Assessment:
For this passive fund, tracking efficiency, compliance discipline and cost control will be the primary performance drivers—not stock-picking ability.
🎯 Suitable for Which Investors?
Suitable if you:
• Prefer Shariah-compliant or ethical investing frameworks
• Want diversified equity exposure across market capitalisations
• Believe in long-term equity compounding
• Have a 5+ year investment horizon
Avoid if you:
• Seek exposure to banking and financial services stocks
• Expect performance to closely mirror Nifty 50 or Nifty 500
• Are short-term or tactical traders
• Prefer actively managed strategies
❓ Should You Invest in This NFO?
Yes, selectively.
This NFO is well-suited for investors looking for faith-based, Shariah-compliant equity investing with diversification. It should be used as a core ethical equity allocation, but not compared directly with conventional diversified funds.
Final Word:
A disciplined, transparent way to participate in equity markets while staying aligned with Shariah principles—returns come with patience, not shortcuts.
⚠️ Disclaimer
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.
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