Upcoming NFO: UTI Mutual Fund Files for UTI Nifty Smallcap 250 ETF

UTI Mutual Fund has proposed the UTI Nifty Smallcap 250 Exchange Traded Fund, an open-ended scheme that will replicate or track the Nifty Smallcap 250 Total Return Index (TRI). The Scheme Information Document (SID) is dated August 17, 2026.  

The scheme's objective is to provide returns corresponding to the total returns of securities represented by the index, before expenses and subject to tracking error.  

Investment Allocation 

The scheme will invest 95% to 100% of its total assets in securities covered by the Nifty Smallcap 250 TRI. Up to 5% can be invested in money market instruments, including Tri-Party Repo on government securities or Treasury Bills, cash and cash equivalents, or units of liquid mutual funds.  

The ETF will use a passive investment strategy and will not make judgements on the investment merit of individual stocks or industry segments. The portfolio will be rebalanced based on changes in index weights as well as subscriptions and redemptions.  

The scheme will seek to keep the difference between its performance and that of the index within the stated tracking parameters.  

Derivatives and Stock Lending 

The scheme may use index futures, options and other permitted derivative instruments for portfolio balancing. Exposure to equity derivatives for non-hedging purposes can be up to 20% of net assets.  

Stock lending is also permitted, with lending capped at 20% of net assets and exposure to any single approved intermediary or counterparty limited to 5%.  

Trading and Charges 

The minimum investment during the NFO is ₹5,000, followed by investments in multiples of ₹1. After listing, units can be bought or sold on the exchange in a minimum quantity of one unit. The scheme has no entry load and no exit load.  

Direct transactions with UTI AMC are available to eligible investors for amounts above ₹25 crore, subject to creation-unit requirements.  

Read More: Upcoming NFO: The Wealth Company Mutual Fund Files for Wealth Company Life Cycle Fund! 

Conclusion 

The document sets out the ETF's index-tracking structure, asset allocation, derivative usage and trading terms. It does not provide an analyst view or recommendation on the scheme. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing. 

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