UTI Nifty Next 50 - Index Fund
              MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENT CAREFULLY.
  11
  Growth of Equity ETFs and Index Funds in India
                                                     16.72%   18.42%                                                             1,70,308
                                                                                                                       1,37,776
                                           10.67%                            Crs.
          re                     8.81%                                       s. 
          sha                                                                Rn                               74,925
          %                                                                  i 
                       4.50%                                                 AUM                    45,624
             2.52%                                                                        17,009
                                                                                 8,534
             Mar-15    Mar-16    Mar-17    Mar-18   Mar-19    Dec-19            Mar-15    Mar-16    Mar-17    Mar-18    Mar-19    Dec-19
                                      Period                                                             Period
          Equity ETFs and Index Funds AUM as % of Equity Mutual Fund AUM*                       Equity ETFs + Index Funds AUM*
       ❑Major Growth Enablers
            ✓ Retirement Funds are mandated to invest at least 5% of annual accretion in Equities. Many of them have opted Equity 
                ETFs/Index Funds for equity investment.
            ✓ Categorization and Rationalization of Mutual Fund Schemes by SEBI$
            ✓ Benchmarking of funds moved from Price Return Index (PRI) to Total Return Index (TRI).
            ✓ Challenges in generating alpha due to improving efficiency of equity market and reducing information asymmetry.
        * Month End Asset Under Management (AUM). Source: MFI Explorer. $ with reference to circular number SEBI/HO/IMD/DF3/CIR/P/2017/114 SEBI - Securities and Exchange 
        Board of India. TRI refers to index values which also account for dividends, where as in case of Price Return Index (PRI), dividends distributed by companies forming part of 
    2   an index are not considered.
 What is an Equity Index?
              Rule Based                Representation                 Indexing
                                        Indices represents            Investing in a  
             An Index is a rule             certain                  portfolio which is 
              based portfolio           characteristics of a       aligned to particular 
                 where,                  market segment,             index. I.e. equity 
            stocks/companies               like market               portfolio will hold 
            are selected based            capitalization,           same stocks and in 
            on pre-defined rules         sectors, themes,           same proportion as 
                                           factors etc.             represented by an 
                                                                         Index.
   3
  Why Indexing?
      Market is efficient      Zero Sum Game           Easy to understand           No Biases                 Low Risk                Low Cost
     Movement in prices        Positive alpha* of        It reduces the           Elimination of         Helps in reducing       Available at lower 
     are based on new             one market               process of           individual’s biases      un-systematic risk      cost as compared 
       information and        participant has to       selection vis-à-vis         & subjective           and rewards for            to actively 
     indices reflects the         come from               an individual           opinion while          taking systematic        managed funds
          collective          negative alpha of            stock/fund                picking                    risk.
      interpretation by         another market                                     stocks/funds
     the various market           participant
         participants
        * Alpha is difference between returns generated by a scheme and its benchmark. When a scheme generate more returns as compared to its benchmark is called positive 
    4   alpha. When scheme generate less returns as compared to its benchmark, is called negative alpha.