UTI Nifty Next 50 ETF

About UTI Nifty Next 50 ETF

• UTI Nifty Next 50 ETF is an open-ended equity scheme that belongs to UTI Mutual Fund House.
• Ayush Jain is the manager of the UTI NIFTY Next 50 ETF.
• The ETF was launched on June 28, 2018.
• UTI Nifty Next 50 ETF’s assets under management (AUM) stood at ₹2,375.37 crore as of June 30, 2024.
• As an ETF, UTINEXT50 is traded on the stock exchange like a stock.
• One can invest in the scheme by buying the ETF units through a demat account with a registered broker.

Investment Objective & Benchmark

• The fund's investment objective is to offer returns mirroring the performance of the underlying index, subject to tracking errors.
• It is benchmarked against the Nifty Next 50 Total Return Index.
• It invests in stocks that represent the next set of large-cap companies after the Nifty Next 50, offering exposure to potential growth opportunities beyond the top 50 companies
• Provides exposure to a diversified portfolio of stocks from various sectors.
• The ETF features companies that have the potential to move up to the Nifty 50 over time, making it attractive for investors seeking growth opportunities
• The scheme is managed passively with investments in stocks in proportion to the weights of these stocks in the Nifty Next 50 Index.

Asset Allocation & Portfolio Composition

• The asset allocation of UTI Nifty Next 50 ETF comprises around 99.81% in equities and 0.19% in cash & cash equivalents.
• The scheme has invested 90% of the available funds in giant and large-cap companies while the remaining is allocated to mid-cap firms.
• Top 10 company holdings make up 35.82% of the asset allocation.

The top 10 Holdings in stocks of UTI Nifty Next 50 ETF include:

• Trent Ltd: 5.54%
• Bharat Electronics Ltd: 5.03%
• Hindustan Aeronautics Ltd: 4.52%
• Tata Power Company Ltd: 3.42%
• Power Finance Corporation Ltd: 3.23%
• Interglobe Aviation Ltd: 3.22%
• Siemens India Ltd: 3.15%
• REC Ltd: 2.98%
• Vedanta Ltd: 2.94%
• IOCL: 2.79%

Sector-wise allocation in this fund;

• Financial Services: 21.96%
• Capital Goods: 14.77%
• Consumer Services: 12.25%
• Fast Moving Consumer Goods: 10.07%
• Automobiles and Auto Components: 6.23%
• Oil, Gas & Consumable Fuels: 5.88%
• Power: 5.84%
• Metals & Mining: 4.7%
• Chemicals: 3.84%
• Construction Materials: 3.53%

Since its inception, UTI Nifty Next 50 ETF has given returns of 22.65%.

The scheme has delivered a return of 64.33% in just the last year as of July 27, 2024, compared to the benchmark index’s yield of 64.57%.