UTI BSE Sensex Next 50 ETF

About UTI BSE Sensex Next 50 ETF

• UTI BSE Sensex Next 50 ETF is an open-ended exchange-traded fund offered by UTI Mutual Fund House.
• The scheme was launched on March 8, 2019.
• Sharwan Kumar Goyal has been the fund manager for the ETF since its inception.
• The total assets under management (AUM) were ₹20.14 crore as of July 31, 2024.
• Retail buyers can invest in BSE Sensex Next 50 ETF using their demat account registered with recognised brokers.
• Like equities, buy orders for the ETF can be placed during the usual trading hours of the National Stock Exchange.

Investment Objective & Benchmark

• UTI BSE Sensex Next 50 ETF aims to provide returns that closely correspond to the total returns of the securities as represented by the underlying index.
• The ETF is benchmarked against the BSE Sensex Next 50 index, designed to measure the performance of 50 large-cap companies that are next in line after those included in the BSE Sensex Index.
• The portfolio is less volatile as compared to mid and small-cap indices. As UTI S&P BSE Sensex Next 50 ETF is traded on the NSE and BSE, it allows capturing intra-day movements of the S&P BSE Sensex Next 50 Index.
• The ETF helps in taking exposure to S&P BSE Sensex Next 50 in the cash segment of the equity market without worrying about taking exposure through the derivative (FNO) segment.
• BSE Sensex Next 50 ETF is suitable for investors who are seeking long-term capital appreciation and investment in securities covered by the S&P BSE Sensex Next 50 Index.
• A very high-risk investment instrument, the ETF is suited for investors looking at a long-term goal of wealth creation.

Asset Allocation & Portfolio Composition

• BSE Sensex Next 50 ETF predominantly invests in equities of the underlying index, allocating up to 100% of the funds.
• The fund can also invest up to 5% in debt/cash/money market instruments including Tri-Party Repo on Government Securities or treasury bills
• The ETF has invested 26.36% of the funds in the financial sector, followed by 13.35% investment in consumer services, 10.71% in FMCG, 10.06% in capital goods and 6.57% in healthcare as of August 10, 2024.
• Following a growth investment approach, the ETF has diversified its fund across market capitalisation – 65% in large cap and 35% in midcap
• The top 10 company holdings in the BSE Sensex Next 50 ETF make up 31.52% of the asset allocation as of September 2023.

List of top company holdings in the BSE Sensex Next 50 ETF :

• Zomato Ltd – 5.41%
• Hindustan Aeronautics Ltd – 3.42%
• Shriram Finance Ltd – 3.02%
• Power Finance Corporation Ltd – 3%
• REC Ltd – 2.95%
• The Tata Power Company Ltd – 2.85%
• Varun Beverages Ltd – 2.81%
• InterGlobe Aviation Ltd – 2.75%
• Avenue Supermarts Ltd – 2.74%
• Indian Oil Corporation Ltd – 2.57%

BSE Sensex Next 50 ETF has yielded a return of 56.86% over a year, as of July 31, 2024, compared to the benchmark index's 57.17% return during the period.

Since its inception, the ETF has yielded a CAGR of 20.96%.