UTI Mutual Fund launches ‘UTI Innovation Fund’: Nine things to know – Blog , Invest Mutual Funds , Announcements , News

UTI Mutual Fund Launches ‘UTI Innovation Fund’

UTI Mutual Fund has unveiled its latest offering, the ‘UTI Innovation Fund,’ an open-ended equity scheme designed to harness the power of innovation and drive growth. This fund adopts a bottom-up investment approach, focusing on innovation-oriented businesses and disruptors poised for non-linear growth. The New Fund Offer (NFO) kicks off on September 25, 2023.

Fund’s Investment Approach

The ‘UTI Innovation Fund’ distinguishes itself by following a unique investment philosophy. It seeks to invest predominantly in innovative businesses and disruptors, aligning with the ever-evolving investment landscape. Ankit Agarwal, Fund Manager at UTI AMC, remarked, “UTI Innovation Fund marks a significant step forward for investors in navigating the ever-growing landscape of investment opportunities. It is a unique portfolio that is true-to-label, investing predominantly in innovative businesses and disruptors. In an era of rapid technological advancements and evolving market dynamics, it’s an opportunity to embrace innovation, adapt to market dynamics, and participate in potential wealth generators that could grow in a non-linear fashion.”

Key Highlights of ‘UTI Innovation Fund’

  1. NFO Dates: The NFO for the ‘UTI Innovation Fund’ commences on September 25, 2023, and concludes on October 9, 2023.
  2. Investment Strategy: The fund’s investment strategy revolves around three core pillars: Innovation (focusing on companies using innovation for productivity or societal impact), Growth (seeking companies with substantial growth potential), and Quality (investing in financially robust companies with strong management and corporate governance).
  3. Target Sectors: The fund aims to explore various investment opportunities, including but not limited to e-commerce, software, fintech, specialty chemicals, clean tech, healthcare, food tech, and digital advertising companies.
  4. Risk Management: Despite its innovation focus, the fund maintains a robust risk-assessment framework to manage portfolio concentration and disruption risks.

Salient Features

  • Suitable for investors seeking a benchmark-agnostic innovation fund supported by research expertise.
  • Ideal for those looking for high growth potential and willing to ride the waves of innovation.
  • Allows investors to participate through lump sum or staggered (SIP/STP) allocations, with a long-term investment horizon.

Fund Manager

Mr. Ankit Agarwal oversees the ‘UTI Innovation Fund,’ bringing his expertise to guide its investment strategy.

Investment Details

  • Minimum Application Amount:
    • Initial Purchase: ₹5,000 and in multiples of ₹1
    • Additional Purchase: ₹1,000 and in multiples of ₹1
  • Load Structure:
    • Entry Load: Nil
    • Exit Load: 1% if redeemed/switched out within 12 months from the date of allotment, Nil thereafter.

Benchmark Index

The fund’s performance will be benchmarked against the Nifty 500 TRI.

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