UTIAMC - NIF5GETF

About UTI Nifty 5 yr Benchmark G-Sec ETF

• The UTI Nifty 5 Yr Benchmark G-Sec ETF is an open-ended exchange-traded fund offered by the UTI Mutual Fund House.
• The ETF was launched on January 29, 2024.
• The fund has a low credit risk compared to its comparatively high interest rate risk.
• It predominantly invests in government-issued bonds
• As of July 31, 2024, the fund’s total assets under management (AUM) stood at ₹82 lakh.
• The UTI Nifty 5 Yr Benchmark G-Sec ETF is managed by Jaydeep Bhowal.
• One can invest in the scheme by directly buying the ETF units through a demat account with a registered broker.
• The ETF units can be traded at the prevailing price during the usual market hours.

Investment Objective and Benchmark

• The Nifty 5-year Benchmark G-Sec Index serves as the benchmark for the UTI Nifty 5 yr Benchmark G-Sec ETF.
• The investment objective of the UTI Nifty 5 yr Benchmark G-Sec ETF is to provide returns equal to the aggregate returns of the stocks in the underlying index.
• The ETF is categorised as having a moderate risk profile, suited for investors with low-risk appetite.
• This product is suitable for investors who want to invest in securities that are part of the Nifty 5-year Benchmark G-Sec Index to gain long-term capital appreciation.
• The fund’s benchmark index will be screened monthly for SEBI compliance, with corrective actions taken if needed.
• Reviews will occur at the end of each month, with a data cut-off nine working days before the month’s last working day.
• The ETF invests in government-issued bonds which are considered a safer investment tool than equity stocks or other bonds issued by corporates.

Asset Allocation and Portfolio Composition

• Between 95% and 100% of the total assets of the UTI Nifty 5 yr Benchmark G-Sec ETF are allocated to securities that are part of the Nifty 5-year Benchmark G-Sec Index.
• In addition, money market instruments such as cash and cash equivalents, T-bills and Tri-Party Repo on government securities, or investments in liquid mutual funds may account for 0% to 5% of the assets.
• The full asset allocation of the UTI Nifty 5-year Benchmark G-Sec ETF is currently debt, making up 100% of the portfolio.
• The portfolio predominantly consists of a long-term sovereign bond, specifically the 7.32% GOI bond maturing on November 13, 2030.
• This bond, which has a rating of SOV, makes up 98.32% of the entire assets in the portfolio.
• The cash and other assets portion of the portfolio makes up the remaining 1.68%.
• The fund has delivered a Compound Annual Growth Rate (CAGR) of 4.60% since its inception, as of July 31, 2024.