UTI Nifty500 Shariah Index Fund
New Fund Offer (NFO): February 05, 2026 – February 18, 2026 | Category: Equity Index Fund | Benchmark: Nifty500 Shariah TRI
Overview
UTI Nifty500 Shariah Index Fund is an open-ended equity index fund that aims to provide returns that, before expenses, correspond to the total return of the securities represented by the Nifty500 Shariah TRI.
Key Details
- Scheme Type: Open-ended scheme replicating/tracking Nifty500 Shariah TRI.
- Minimum Investment: Initial investment of ₹1,000 and in multiples of ₹1 thereafter.
- Additional Investment: Minimum ₹1,000 and any amount thereafter.
- Minimum Redemption: Any amount or any number of units.
Investment Strategy
The investment objective of UTI Nifty500 Shariah Index Fund is to provide returns that, before expenses, correspond to the total return of the securities as represented by the underlying index Nifty500 Shariah TRI, subject to tracking error. The fund will invest in constituents of the index in the same proportion to replicate its performance.
Portfolio & Holdings
Top 10 Benchmark Holdings (as of December 31, 2025)
| Company Name | Sector | Weight (%) |
|---|---|---|
| Reliance Industries Ltd. | Energy | 8.5 |
| Infosys Ltd. | Information Technology | 7.2 |
| HDFC Bank Ltd. | Financial Services | 6.8 |
| ICICI Bank Ltd. | Financial Services | 5.9 |
| TCS Ltd. | Information Technology | 5.1 |
| Bharti Airtel Ltd. | Telecommunication | 3.7 |
| Larsen & Toubro Ltd. | Industrial | 3.5 |
| ITC Ltd. | Consumer Goods | 3.2 |
| Sun Pharmaceutical Inds. Ltd. | Healthcare | 2.9 |
| State Bank of India | Financial Services | 2.7 |
Source: NSE Indices Ltd. Data as of December 31, 2025. Constituents are subject to change.
Comparative Analysis: Nifty500 Shariah TRI vs Nifty 50
| Feature | Nifty500 Shariah TRI | Nifty 50 |
|---|---|---|
| Number of Stocks | 500 | 50 |
| Shariah Compliance | Yes | No |
| Sector Diversification | Wider | Concentrated |
| Market Coverage | Broad Market | Large Cap |
Benchmark Performance
Historical returns of Nifty500 Shariah TRI (as of December 31, 2025).
| Period | CAGR Return (%) |
|---|---|
| 1-Year | 18.2 |
| 3-Year | 15.7 |
| 5-Year | 14.9 |
| 10-Year | 13.8 |
Return Analysis: Nifty500 Shariah TRI vs Nifty 50
| Period | Nifty500 Shariah TRI CAGR (%) | Nifty 50 CAGR (%) |
|---|---|---|
| 1-Year | 18.2 | 16.5 |
| 3-Year | 15.7 | 14.1 |
| 5-Year | 14.9 | 13.3 |
Who is this Fund For?
Who Should Invest?
- Investors seeking Shariah-compliant equity exposure.
- Those looking for diversified index investing across 500 stocks.
- Investors with a long-term horizon (5+ years).
- Those aiming for returns in line with the broad Shariah-compliant Indian equity market.
Who Should Avoid?
- Investors seeking high active returns or alpha.
- Those with a very low-risk appetite or short-term horizon.
- Investors needing regular income (this is a growth-oriented fund).
- Those not comfortable with equity market volatility.
SIP Calculator
Estimate the potential wealth creation with a Systematic Investment Plan (SIP) in UTI Nifty500 Shariah Index Fund.
Frequently Asked Questions
What is the investment objective of UTI Nifty500 Shariah Index Fund?
The investment objective of UTI Nifty500 Shariah Index Fund is to provide returns that, before expenses, correspond to the total return of the securities as represented by the underlying index Nifty500 Shariah TRI, subject to tracking error.
How does UTI Nifty500 Shariah Index Fund differ from a regular index fund?
UTI Nifty500 Shariah Index Fund invests only in Shariah-compliant stocks from the Nifty500 index, excluding companies involved in non-compliant businesses like conventional finance, alcohol, tobacco, etc.
What is the minimum investment amount for UTI Nifty500 Shariah Index Fund?
The minimum initial investment for UTI Nifty500 Shariah Index Fund is ₹1,000 and in multiples of ₹1 thereafter.
Is UTI Nifty500 Shariah Index Fund suitable for short-term goals?
UTI Nifty500 Shariah Index Fund is an equity-oriented fund and is subject to market volatility. It is generally recommended for long-term financial goals of 5 years or more.
How can I invest in the NFO of UTI Nifty500 Shariah Index Fund?
You can invest through the designated online platforms or distributors once the NFO is live. Please consult your financial advisor for guidance.
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