The UTI Nifty 50 Exchange Traded Fund (ETF) is a popular investment option for those seeking to gain exposure to the performance of India’s stock market, specifically the Nifty 50 Index, which consists of the top 50 large-cap companies listed on the National Stock Exchange (NSE). Here’s a detailed review of the UTI Nifty 50 ETF:
Key Features of UTI Nifty 50 ETF:
(1) Index Tracking:
- The UTI Nifty 50 ETF is designed to track the performance of the Nifty 50 Index, which includes a diversified group of 50 companies from various sectors like information technology, financial services, energy, consumer goods, and more.
- The ETF aims to replicate the returns of the Nifty 50, minus any minor tracking errors.
(2) Management:
- The fund is managed by UTI Asset Management, one of India’s oldest and most respected asset management companies. UTI has a strong track record of managing passive funds.
(3) Liquidity and Trading:
- As an ETF, it is listed on stock exchanges (primarily NSE and BSE), allowing investors to buy and sell units throughout the trading day just like stocks.
- This feature provides liquidity, flexibility, and ease of entry and exit for investors, especially those who trade actively.
(4) Expense Ratio:
- The expense ratio of the UTI Nifty 50 ETF is typically low, which is a significant advantage over actively managed funds. Lower costs can enhance long-term returns by minimizing the drag of fees on your investment.
(5) Dividend Payout:
- The ETF may distribute dividends based on the dividend income it receives from the underlying stocks in the Nifty 50 Index. These dividends are generally paid annually, though they may vary depending on the performance of the constituent companies.
(6) Simplicity:
- The UTI Nifty 50 ETF offers an easy and low-cost way to gain exposure to the Indian equity market without needing to pick individual stocks. It’s a great choice for passive investors who want broad market exposure.
Uti nifty 50 exchange traded fund share price
As of December 27, 2024, the Net Asset Value (NAV) of the UTI Nifty 50 Exchange Traded Fund (ETF) was ₹258.08.
The NAV represents the per-unit value of the ETF’s assets and is calculated at the end of each trading day.
Please note that the NAV is not the same as the market price at which the ETF units trade during market hours.
The market price can fluctuate throughout the trading day based on supply and demand dynamics.
For the most current market price, you can check the ETF’s listing on the National Stock Exchange (NSE).
For example, on December 6, 2024, the ETF’s closing price was ₹270.49.
UTI Nifty 50 ETF NAV
As of the latest available information, the Net Asset Value (NAV) of the UTI Nifty 50 Exchange Traded Fund (ETF) is ₹258.08.
Please note that NAV is updated daily after the market close, and it reflects the per-unit value of the ETF’s holdings. You can check the most recent NAV on the official UTI Mutual Fund website or financial platforms that track fund data.
UTI Nifty 50 Index Fund Direct Growth
Here is a detailed overview of the UTI Nifty 50 Index Fund Direct Growth in a tabular format for easier understanding:
| Feature | Details |
| Fund Name | UTI Nifty 50 Index Fund Direct Growth |
| Fund Type | Passive Mutual Fund (Index Fund) |
| Investment Objective | To replicate the performance of the Nifty 50 Index, which includes the top 50 large-cap stocks in India. |
| Benchmark Index | Nifty 50 Index |
| Fund House | UTI Asset Management Company |
| Expense Ratio | Low (around 0.1% – 0.2% approx.) (As of the latest available data) |
| Investment Strategy | Invests in the same 50 stocks as the Nifty 50 Index in the same proportion. |
| Minimum Investment | ₹500 (lump sum), ₹500 per month (SIP) |
| Taxation | Short-Term Capital Gains (STCG): 15% tax if sold within 1 year. Long-Term Capital Gains (LTCG): 10% tax for gains above ₹1 lakh per year. |
| Risk Level | Moderate to High (since it is an equity fund and subject to market risks) |
| Liquidity | High (Can be bought or sold on any business day at the prevailing NAV) |
| Dividend Option | Not applicable in the Direct Growth plan (earnings are reinvested into the fund) |
| Fund Manager | Managed by UTI Asset Management Company |
| NAV Calculation | NAV is calculated at the end of each trading day. |
| Holdings | The fund holds the same stocks as in the Nifty 50 Index, with weightings based on the index’s composition. |
Performance Overview:
- The performance of the UTI Nifty 50 Index Fund closely tracks the Nifty 50 Index, with minimal tracking error. Over the long term, the fund aims to provide returns similar to the index, which has historically delivered solid returns.
- Being an equity index fund, it is likely to exhibit market volatility but offers strong growth potential over the long term, especially when the market performs well.
Advantages:
- Diversification: Provides exposure to 50 of India’s largest and financially stable companies.
- Low-Cost: The expense ratio is significantly lower compared to actively managed funds.
- Simplicity: A passive investment strategy that requires minimal management, ideal for investors who want hands-off exposure to the market.
- No Entry Load: No entry load for investments in the direct plan, making it more cost-effective.
- Long-Term Growth: Suitable for long-term investors who want to align their portfolio with the broader Indian economy.
Disadvantages:
- Market Risk: The fund is subject to the performance of the Nifty 50 Index, which is influenced by broader market conditions and may experience fluctuations.
- No Active Management: Since it tracks an index, there’s no opportunity to outperform the market through active management.
- Short-Term Volatility: While the long-term growth potential is strong, short-term price fluctuations are common in equity markets.
Is It Right for You?
- Long-Term Investors: Ideal for those with a long-term investment horizon who are looking for low-cost exposure to India’s leading companies.
- Passive Investors: Suitable for investors who want to invest in a diversified portfolio without the need for active management.
- Risk-Tolerant Investors: While the fund carries equity market risks, it is a good option for those who are comfortable with market volatility and are investing for the long term.
Conclusion:
The UTI Nifty 50 Index Fund Direct Growth is a strong choice for passive investors who want exposure to India’s largest companies and are looking for a low-cost, long-term investment vehicle. If you are comfortable with equity market risks and seek diversification in a single investment, this index fund is an excellent option.
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