Breakthrough Launch: SEBI-Regulated UTI Nifty India Internet Index Fund Sets Sail, Targeting Digital Economy Growth

Breakthrough Launch: SEBI-Regulated UTI Nifty India Internet Index Fund Sets Sail, Targeting Digital Economy Growth​

Mumbai: UTI Mutual Fund has announced the launch of its new product, the UTI Nifty India Internet Index Fund. This investment vehicle is designed as a passive instrument, meticulously replicating and tracking the performance of the Nifty India Internet Total Return Index (TRI). The fund's debut signals a focused commitment to capturing the immense growth potential within India's thriving digital economy.

This open-ended scheme adheres strictly to SEBI (Mutual Funds) Regulations, 2026. Its primary objective is to provide returns that correspond directly to the total return of securities represented by the underlying index, subject only to tracking error. The fund structure offers investors exposure to companies that conduct business largely through online platforms.

Investment Strategy and Core Offerings​

The UTI Nifty India Internet Index Fund adopts a passive management strategy. It commits to investing at least 95% of its net assets in the stocks comprising the Nifty India Internet TRI, thus ensuring a close correlation with the underlying index performance. The remaining portion (up to 5%) is allocated to money market instruments and cash equivalents to manage liquidity needs.

The fund’s investment mandate includes engaging in securities lending, which is permissible up to 20% of the net assets of the scheme. Additionally, exposure through equity derivative instruments is capped at 20% of the net assets, aiding in portfolio rebalancing efforts as needed.

Commitment to Transparency and Risk Management​

As an index fund, the management focuses intensely on minimizing tracking error—defined as the annualized standard deviation of the difference between the underlying index and the NAV of the scheme. This crucial metric must not exceed 2%.

The scheme is designed with comprehensive risk mitigation strategies. For debt and money market instruments, management employs measures like analyzing issuer-specific risks and keeping investments in short-term, highly rated securities to mitigate credit risk and spread risk.

Key Operational Details for Investors​

The UTI Nifty India Internet Index Fund is available under the Regular Plan and the Direct Plan, both offering only a Growth Option. This allows investors flexibility depending on their investment channel.

Key transaction details are as follows:

• Entry Load: Not Applicable.
• Exit Load: Nil.
• Minimum Initial Investment: ₹1,000/- in multiples of Re. 1/-.
• Systematic Investment Plan (SIP): Minimum SIP amount is set at ₹500/-, with options available for Daily, Weekly, and Monthly periodicity.

The fund structure ensures that all subscription and redemption transactions are conducted at the applicable Net Asset Value (NAV) on every business day within five working days from the date of allotment. The scheme will disclose its portfolio and related data monthly on both the UTI Mutual Fund and AMFI websites.

Governance and Expert Management​

The integrity and oversight of this new fund rest with experienced management. Mr. Sharwan Kumar Goyal, a 45-year-old professional holding B.Com, MMS, and CFA, serves as the dedicated Fund Manager. He has two decades of experience in Risk/Fund management within UTI AMC and manages several other schemes for the company.

Assistant Fund Managers supporting the fund include Mr. Ayush Jain (30 years, CA, B.Com) and Mr. Lokesh Kulthia (31 years, MBA Finance). These professionals are affiliated with a wide range of UTI Mutual Fund offerings.

Index Methodology Spotlight: Nifty India Internet TRI​

The performance of the scheme is benchmarked against the Nifty India Internet TRI. This index tracks companies that conduct significant business through online platforms within the broader Nifty Total Market universe.

Key aspects of the index include:

• Eligibility: Stocks must be part of the eligible basic industries within the Nifty Total Market.
• Weighting: Stock weights are determined based on free float market capitalization and are capped at 20% during quarterly rebalancing reviews.
• Reconstitution: The index undergoes semi-annual reviews in March and September, ensuring its relevance to the evolving digital landscape.

The constituents of the index as of June 30, 2026 include dominant players like ETERNAL LTD. (20.48% weightage), PB FINTECH LTD. (12.38%), and ONE 97 COMMUNICATIONS LTD. (10.55%).

Future-Proofing Investments: SIP and SWP Features​

The scheme offers robust features for sustained investment, including Systematic Withdrawal Plan (SWP) and advanced SIP options. The SWP is available in monthly, quarterly, half-yearly, or annual tranches, with a minimum withdrawal of ₹500/-, to support long-term income planning.

Furthermore, the fund supports various flexible SIP tools:

• Step Up Facility: Investors can opt for an increasing SIP amount at specified intervals (e.g., yearly), with a minimum step-up amount set at ₹500/- in multiples of ₹100/-.
• Any Day SIP & Pause Facility: These facilities provide flexibility to adapt investment patterns according to financial circumstances.

Compliance and Disclosure: A Commitment to Investors​

The AMC has provided a due diligence certificate confirming that the Scheme Information Document is compliant with SEBI (Mutual Funds) Regulations, 2026. The scheme adheres to stringent requirements regarding investor protection, including clear protocols for reporting tracking error and portfolio concentration norms. All performance-related data will be disclosed daily/monthly as per regulatory guidelines, ensuring investors are fully informed of the investment structure and risks involved.