UTI-Nifty 500 Exchange Traded Fund

The Scheme will track underlying Index and will use a "passive" or indexing approach to endeavor to achieve scheme`s investment objective. The AMC does not make any judgments about the investment merit of a particular stock or a particular industry segment nor will it attempt to apply any economic, financial or market analysis. UTI Nifty 500 Exchange Traded Fund will be managed passively with investments in stocks comprising the underlying Index subject to tracking error. 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. A part of the funds may be invested in money market instruments, including Tri-Party Repo on government securities or T-bills, cash & cash equivalents or Liquid category of Mutual Fund, to meet liquidity requirements. Since the Scheme is an Exchange Traded Fund, it will invest at least 95% of its total assets in the securities comprising the underlying Index. As part of the Fund Management process, the Scheme may use derivative instruments such as index futures and options, or any other derivative instruments that are permissible or may be permissible in future under applicable regulations. The Scheme intends to use derivatives for the purpose of portfolio balancing. For detailed derivative strategies, please refer to SAI. Since the scheme is an exchange traded fund, the scheme will only invest in the security constituting the underlying index. However, due to corporate action in companies comprising of the index, the scheme may be allocated/allotted securities which are not part of the index. The scheme may hold upto 5% of their total assets in stocks not included in the corresponding Underlying Index. For example, the AMC may invest in stocks not included in the relevant Underlying Index in order to reflect various corporate actions (such as mergers) and other changes in the relevant Underlying Index (such as reconstitutions, additions, deletions and these holdings will be in anticipation and in the direction of impending changes in the underlying index). These investments which fall outside the underlying index due to corporate action shall be rebalanced not later than seven days from the date of such change.