The new fund offers or NFOs of the scheme are open for subscription and will close on January 23. The schemes will re-open for continuous sale and repurchase within five business days from the date of allotment.
The investment objective of the schemes is to provide returns that, before expenses, corresponds to the total returns of the securities as represented by the underlying index, subject to tracking error.
The schemes will be managed by Jaydeep Bhowal.
The minimum initial investment amount in both the schemes during NFO period is Rs 5,000 and in multiples of Re 1 thereafter. Subsequent minimum investment amount is Rs 1,000 and in multiples of Re 1 thereafter.
UTI Nifty 5 yr Benchmark G-Sec ETF
UTI Nifty 5 yr Benchmark G-Sec ETF is an open-ended scheme replicating/tracking Nifty 5 yr Benchmark G-Sec Index with a relatively high interest rate risk and relatively low credit risk.The scheme will be benchmarked against Nifty 5 yr Benchmark G-Sec Index. The scheme will allocate 95-100% in securities covered by Nifty 5 yr Benchmark G-Sec Index and 0-5% in money market instruments, including Tri-Party Repo on government securities or T-bills, cash and cash equivalents or liquid category of mutual fund. The scheme is suitable for investors who are seeking long-term capital appreciation and want investment in securities covered by Nifty 5 yr Benchmark G-Sec Index.
UTI Nifty 10 yr Benchmark G-Sec ETF
UTI Nifty 10 yr Benchmark G-Sec ETF is an open-ended scheme replicating/tracking Nifty 10 yr Benchmark G-Sec Index with a relatively high interest rate risk and relatively low credit risk.
The scheme will be benchmarked against Nifty 10 yr Benchmark G-Sec Index. The scheme will invest 95-100% in securities covered by Nifty 10 year Benchmark G-Sec Index and 0-5% in money market instruments, including Tri-Party Repo on government securities or T-bills, cash and cash equivalents or liquid category of mutual fund.
The scheme is suitable for investors who are seeking long-term capital appreciation and want investment in securities covered by Nifty 10 yr Benchmark G-Sec Index.
Should you invest?
ETMutualFunds believes that investors should invest in an NFO only if it is offering something unique or something extra to already available options. Otherwise, they are better off with an existing scheme with a long, consistent performance record.
There are three passive debt schemes with a 5 year maturity in the market. However, only one scheme has a performance record of three years. Motilal Oswal Nifty 5 Year Benchmark G-Sec ETF offered 4.42% in three years. Nippon India ETF Nifty 5 yr Benchmark G-Sec, the topper in the category, offered 7.56% in one year. ICICI Pru Nifty 5 yr Benchmark G-SEC ETF and Motilal Oswal Nifty 5 Year Benchmark G-Sec ETF offered 7.30% and 7.29% respectively in one year horizon.
There are two passive debt schemes with a 10 year maturity in the market. One scheme has a performance record of seven years. SBI Nifty 10 yr Benchmark G-Sec ETF offered 4.73% in a seven year horizon and 5.77% in five years. Other scheme, ICICI Pru Nifty 10 yr Benchmark G-Sec ETF has a performance record of one year (7.46%).
