UTI Nifty500 Shariah Index Fund NFO opens today. Key details to know

The new fund offer (NFO) of UTI Nifty500 Shariah Index Fund opened on Thursday, February 5, 2026. The objective of the scheme is to provide returns that, before expenses, correspond to the total return of the securities as represented by the underlying index, subject to tracking error, UTI Mutual Fund said in the Scheme Information Document (SID).

This article explains key details of the NFO.

UTI Nifty500 Shariah Index Fund is an open-ended passive scheme replicating the Nifty500 Shariah TRI, subject to tracking error. While the scheme will aim to generate returns corresponding to the total return of the securities represented by Nifty500 Shariah Index, there is no no assurance that the investment objective of the scheme will be achieved.

• Plans and options: UTI Nifty500 Shariah Index Fund has regular and direct plans, with growth options in both.

• Entry and exit load: Nil

• Minimum investment amount: Minimum initial lump sum investment amount is ₹1,000 and in multiples of ₹1 thereafter. The minimum SIP amount for daily, weekly and monthly SIP is ₹500 and in multiples of ₹1 thereafter.

• NFO open date: February 5, 2026

• NFO closure date: February 18, 2026

How will the scheme allocate its assets?

The scheme will not participate in stock lending.

The scheme can invest minimum 95% and maximum 100% in Securities covered by Nifty500 Shariah Index. It can also have up to 5% in cash and other Shariah compliant instruments.

However, the scheme will not invest in following securities:

• Securitized Debt

• Overseas Securities/ Foreign Securities

• ReITS and InVITS

• Debt Instruments with Special Features (AT1 and AT2 Bonds)

• Debt instruments with SO/ CE rating

• Repo/ Reverse repo transactions in corporate debt securities

• Credit default Swap transactions

• Covered call options

• Unlisted debt instrument

• Bespoke or complex debt products

• Unrated debt money market instruments (except G-Secs, T-Bills and other money market instruments)

• Debt Derivatives

• Short selling

• Securities Lending (Stock lending)

• Mutual Funds

"The net assets of the scheme will be invested in stocks constituting the underlying index. This would be done by investing in the stocks comprising of the index. The Scheme may take an exposure to equity derivatives of constituents of the underlying index for short duration when securities of the index are unavailable, insufficient or for rebalancing at the time of change in index or in case of corporate actions, as permitted subject to rebalancing within 7 days or as specified by SEBI from time to time. The exposure of scheme in derivative instruments shall be upto 20% of the net assets of the scheme," the SID says.

How will the scheme be managed?

The scheme will be managed by Sharwan Kumar Goyal and Ayush Jain.

According to the SID, UTI Nifty500 Shariah Index Fund will be managed passively with investments in stocks comprising the Nifty500 Shariah Index TRI.

"The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, taking into account the change in weights of stocks in the Index as well as the incremental collections/redemptions in the Scheme."

More about the Nifty500 Shariah Index

According to Niftyindices factsheet dated January 30, 2026, the index has given a total return of 12.13% since its inception on February 19, 2008. In last five years, the index has given a total annualised return of 13.42%.