UTI Nifty 50 Index Fund(IDCW)
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Business Overview
The UTI Nifty 50 Index Fund (IDCW) is a passive investment vehicle designed to replicate the performance of the Nifty 50 Index, making it an ideal choice for investors seeking exposure to India's top 50 companies. This fund is perfect for both new and seasoned investors looking for a low-cost, diversified investment option. By investing in this fund, you can benefit from the growth potential of the Indian economy while minimizing risks associated with individual stocks.
- Tracks the Nifty 50 Index for broad market exposure
- Low expense ratio for cost-effective investing
- Ideal for long-term wealth creation
- Offers diversification across multiple sectors
- Suitable for both beginners and experienced investors
Investment Thesis
UTI Nifty 50 Index Fund (IDCW) stands out due to its robust promoter credibility, significant growth potential in digital services, and attractive valuations compared to peers. This makes it a compelling choice for investors seeking stable returns in a diversified manner.
- Strong backing from UTI Asset Management Company, enhancing trust and reliability.
- Digital services are on the rise, providing a solid growth trajectory for the fund.
- Valuations are appealing compared to similar index funds, offering potential for higher returns.
- Diversification across top Nifty 50 companies mitigates risk while maximizing exposure.
- Ideal for long-term investors looking for a blend of stability and growth.
Opportunity vs Risk
- Diversified exposure to Nifty 50
- Potential for long-term capital growth
- Low expense ratio compared to peers
- Systematic Investment Plan (SIP) available
- Market volatility affecting returns
- Tracking error with Nifty 50
- Economic downturn impacts performance
- Regulatory changes in mutual funds
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10BusinessHighThe fund tracks a well-established index, but lacks a unique competitive advantage.
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10GrowthHighConsistent growth in the underlying index, but dependent on market performance.
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10ProfitabilityHighGood profitability metrics, but not exceptional compared to active funds.
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10ValuationHighValuation metrics are in line with peers, but no significant discount.
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8BalanceHighStrong balance sheet with low debt, but liquidity could be improved.
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7GovernanceHighGood governance practices, but promoter holding is moderate.
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5DriversGoodLimited growth drivers as it is a passive fund.
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3TechnicalsLowMarket sentiment is neutral, with average liquidity.