UTI Mutual Fund launches 2 new passive funds: NFO opens till September 11; check minimum investment & features

Investors looking to diversify their equity exposure across different sectors can now consider two new passive fund options from UTI Mutual Fund, which has opened the New Fund Offer (NFO) for its latest products.

UTI Mutual Fund has launched the UTI BSE India Sector Leaders Exchange Traded Fund and the UTI BSE India Sector Leaders Index Fund.

The NFO for both funds opened on August 31 and will remain open until September 11, 2026.

The ETF is the industry’s first ETF tracking the BSE India Sector Leaders Index, according to UTI Mutual Fund.

Both funds are passively managed and seek to replicate the performance of the BSE India Sector Leaders Total Returns Index (TRI), subject to tracking error. The products will give investors exposure to a portfolio of sector-leading companies from the BSE500 TRI universe through a rules-based investment approach.

The BSE India Sector Leaders Index covers companies across sectors including Financial Services, Information Technology, Telecommunication and Oil & Gas.

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“The BSE India Sector Leaders Index embodies a distinctive investment philosophy that captures leadership across the breadth of India’s economy, rather than being concentrated only in its largest sectors,” said Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC.

“Its transparent, rules-based methodology provides diversified exposure to leading businesses across sectors, supported by a disciplined approach to portfolio construction and security selection,” Goyal said.

He said the two new products extend this investment approach through passive investment vehicles.

The two funds give investors access to a diversified portfolio of leading companies across sectors through a systematic, rules-based approach, Goyal noted.

Minimum investment and fund managers

For the UTI BSE India Sector Leaders Exchange Traded Fund, the minimum initial investment during the NFO is Rs.5,000, with investments allowed in multiples of Re.1 thereafter.

For the UTI BSE India Sector Leaders Index Fund, the minimum initial investment is Rs. 1,000, also in multiples of Re.1 thereafter. The subsequent minimum investment under a folio is Rs.1,000, with no upper limit.

Sharwan Kumar Goyal is the fund manager, while Ayush Jain and Lokesh Kulthia are assistant fund managers.

Both funds will use the BSE India Sector Leaders TRI as their benchmark.

The ETF does not offer any Plans/Options for investment. The Index Fund offers only the Growth Option and is available under Regular Plan and Direct Plan.

There is no entry load for the schemes and the exit load is nil.

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What investors should know

Both schemes seek returns that are commensurate, before fees and expenses, with the performance of the BSE India Sector Leaders TRI over the long term, subject to tracking error. Their investments will be in equity securities covered by the index.

UTI Mutual Fund said the product labelling assigned during the NFO is based on an internal assessment of the scheme characteristics or model portfolio. This may vary after the NFO when actual investments are made.

The benchmark risk assessment is based on the index composition as of July 31, 2026. Investors have also been advised to consult their financial advisers if they are unsure whether the products are suitable for them.