UTI Nifty Next 50 Index Fund: Want to take your portfolio to the next level, UTI Nifty Next 50 Index Fund can be a great option for you.
This fund invests in the next 50 largest companies in India, which have the potential for big profits in the future. Let’s know about this fund in detail.
What is UTI Nifty Next 50 Index Fund
UTI Nifty Next 50 Index Fund is an open-ended equity fund that tracks the Nifty Next 50 Index.
This index represents 50 companies that are not included in the Nifty 50 index but have the potential to be included in the top 50 companies in the future.
By investing in this fund, you can take advantage of the growth of these emerging companies.
Why choose UTI Nifty Next 50 Index Fund
Diversified Portfolio: This fund invests in companies from different sectors, thereby diversifying your portfolio.
Long-term Returns: History proves that such funds give good returns in the long run.
Professional Management: The fund is managed by professional fund managers, who use your money properly.
Low Expense Ratio: Being an index fund, its expense ratio is lower than other equity funds.
UTI Nifty Next 50 Index Fund: Return Story
In the last few years, UTI Nifty Next 50 Index Fund has given great returns to investors. The direct plan of this fund has given an annual return of 23.44% on lump sum investment while investing through SIP has given an annual return of 28.27%.
Effect of Expense Ratio
The main reason for the difference in returns between direct and regular plans is the expense ratio.
The expense ratio of the direct plan is 0.36%, while that of the regular plan is 0.79%. This is the reason why those investing in the direct plan get higher returns.
Portfolio Analysis
UTI Nifty Next 50 Index Fund invests primarily in large-cap stocks, making it a low-risk fund. However, being an equity fund, it may be affected by market volatility.
Should you invest in this fund
If you are looking to invest for the long term and have a moderate risk appetite, UTI Nifty Next 50 Index Fund may be a good option for you.
But, before investing, consult a financial advisor according to your financial goals and risk profile.