UTI Mutual Fund (UTI) launches UTI Innovation Fund, an open-ended equity scheme following the innovation theme to bring the next generation edge to investor’s portfolio. The Fund would follow a bottom-up approach for investing in innovation-oriented businesses and disruptors with the potential of non-linear growth outcomes. The NFO starts on September 25, 2023 and closes on October 9, 2023.
The investment strategy of the fund focuses on 3 pillars vis., Innovation: Companies using innovation to enhance productivity or improve environmental/social impact; Growth: Companies with significant growth potential, demonstrated track record of developing the market and/or gaining market share; Quality: Financially strong companies with market leadership, robust business models, quality management & corporate governance.
The Fund aims to invest in potential investment opportunities such as, but not limited to, ecommerce, software, fintech, specialty chemicals, clean tech, healthcare, food tech, digital ad companies etc. The Fund would have a higher active share due to the focus on innovation, however, follows robust risk-assessment framework that aims to manage portfolio risks – concentration and disruption.
Mr. Ankit Agarwal, Fund Manager, UTI AMC, commented on the launch, “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.”
Investors may consider investing in this fund with a minimum horizon of 3-5 years. Having said so, to benefit from potential non-linear growth of the portfolio companies through the entire cycle, investors may consider remaining invested for much longer periods.
Salient features of UTI Innovation Fund
· Suitable for
o Investors looking for a true to label innovation fund which is benchmark agnostic and backed by research expertise
o Investors seeking relatively high growth potential and willing to ride the underlying waves of innovation
o Investors may invest through lump sum or staggered (SIP/ STP) allocation and with a long-term horizon
· Fund Manager
Mr. Ankit Agarwal
· Minimum Application Amount
o Initial Purchase: Rs 5,000 and in multiples of Rs 1
o Additional Purchase: Rs 1,000 and in multiples of Rs 1/-
· Load Structure
o Entry Load: Nil
o Exit Load: 1% if redeemed/switched out within 12 months from the date of allotment, Nil
The above Exit Load is applicable for all redemptions/switch-out transactions including Systematic Withdrawal Plan (SWP) and Systematic Transfer Investment Plan (STRIP)
· Benchmark Index
o Nifty 500 TRI