Question 1

What is the UTI Nifty 500 Exchange Traded Fund?

Accepted Answer

The UTI Nifty 500 Exchange Traded Fund is a passively managed equity exchange traded fund (ETF) that aims to replicate the performance of the Nifty 500 Total Returns Index (TRI), subject to tracking error. It invests in the same stocks and broadly in the same proportion as the underlying index of Nifty 500 TRI.

Question 2

What is the investment objective of UTI Nifty 500 Exchange Traded Fund?

Accepted Answer

The objective is to provide returns that correspond to the total returns of the Nifty 500 TRI, subject to tracking error. However, there is no assurance that the investment objective of the scheme will be achieved.

Question 3

What is the Risk-o-meter of UTI Nifty 500 Exchange Traded Fund?

Accepted Answer

The scheme is classified as "Very High Risk" as per the Risk-o-meter.

Question 4

How is diversification achieved in the fund?

Accepted Answer

The scheme tracks the Nifty 500 TRI, which comprises companies across large-cap, mid-cap and small-cap segments and represents a wide range of sectors, thereby helping reduce concentration risk.

Question 5

Who should consider investing in this ETF?

Accepted Answer

This ETF is suitable for investors seeking long-term capital appreciation through diversified exposure to the Indian equity market using a passive investment strategy. It may be suitable for investors looking to:Start their equity journeyOwn a one-index solutionAccess opportunities beyond large-cap companiesBuild a diversified core portfolioParticipate in India's long-term growth potential

Question 6

What is the minimum investment amount required to invest in UTI Nifty 500 Exchange Traded Fund?

Accepted Answer

Minimum 1 Unit and in multiple thereof can be bought / sold in demat form at prevailing prices quoted on the Exchange where they are traded.

Question 7

How can investors buy and sell units of the ETF?

Accepted Answer

Investors can buy and sell units of the UTI Nifty 500 Exchange Traded Fund through stock exchanges using a demat and trading account.

Question 8

Is there any lock-in period for UTI Nifty 500 Exchange Traded Fund?

Accepted Answer

No lock-in period is applicable for this fund.

Question 9

What is Tracking Error and how does it impact performance?

Accepted Answer

Tracking Error arises due to factors such as expenses, cash holdings, execution price difference and corporate actions. Lower tracking error generally indicates closer alignment between fund returns and index returns.

Question 10

What are the risks associated with UTI Nifty 500 Exchange Traded Fund?

Accepted Answer

As an equity ETF, the UTI Nifty 500 Exchange Traded Fund is subject to market-related risks. Key risks include:Market Risk - The value of investments may fluctuate with market movements.Liquidity risk - Liquidity on the exchange may affect buying or selling.Tracking error risk - Fund returns may differ slightly from the index returnsEconomic and regulatory risk - Economic events and regulatory changes may impact markets.

UTI Nifty 500 Exchange Traded Fund

About Scheme

Why choose this scheme?

Past Performance