Presenting Uti Nifty Etf & Uti Sensex Etf

PRESENTING UTI NIFTY ETF & UTI SENSEX ETF. Call your broker, place your trade and settle it like you do for your stocks.

UTI Mutual Fund brings you two new products. UTI Nifty Exchange Traded Fund (UTI NIFTY ETF) and UTI Sensex Exchange Traded Fund (UTI SENSEX ETF) are two diversified portfolios that you can trade like stocks. UTI NIFTY ETF Key features: • Buy and sell at real time prices UTI SENSEX ETF • May be considered for a variety of trading strategies akin to a stock • Aims for one of the most cost-effective diversified portfolios

TOLL-FREE: 1800 22 1230 SMS “UTIETF” to 5676756 [email protected] www.utimf.com |

UTI SENSEX ETF UTI NIFTY ETF This product is suitable for investors This product is suitable for investors who are seeking:* who are seeking:* • Long term investment • Long term investment • Investment in securities covered by • Investment in securities covered by S&P BSE Sensex CNX Nifty Index

*Investors should consult their financial advisors if in Investors understand that their principal *Investors should consult their financial advisors if in Investors understand that their principal doubt about whether the product is suitable for them. will be at moderately high risk doubt about whether the product is suitable for them. will be at moderately high risk

REGISTERED OFFICE: UTI Tower, 'Gn' Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. Phone: 022 – 66786666. UTI Asset Management Company Ltd. (Investment Manager for UTI Mutual Fund) E-mail: [email protected], (CIN-U65991 MH2002GOI137867). MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Frequently Asked Questions (FAQs) about Exchange Traded Funds (ETFs)

Q. What is an Exchange Traded Fund? A. Exchange Traded Fund (ETF) is a security that tracks an index, a commodity or a sector like an index fund or a sectoral fund but trades like a stock on an exchange. It is similar to a close ended mutual fund listed on stock exchanges. ETF's experience price changes throughout the day as they are bought and sold during the trading hours of the exchange.

Q. What are Equity ETFs? A. Equity ETF is a basket of stocks that reflects the composition of an index, like CNX NIFTY or S&P BSE SENSEX. The ETFs trading value is based on the net asset value of the underlying stocks that it represents. Think of it as a mutual fund that you can buy and sell in real-time at a price that change throughout the day.

Q. How does one trade in ETFs? A. ETFs can be bought/sold just like stocks through any Stock Exchange Member’s trading terminals anywhere across the country.

Q. What are the main differences between an exchange traded fund and mutual funds (close ended fund and open ended fund)? A. Characteristic Open Ended Mutual Fund Closed Ended Mutual Fund Exchange Traded Fund

Fund Size Flexible Fixed Flexible

Liquidity Provider Fund itself Stock market Stock market/fund itself

Sale Price At NAV based prices Significant premium/discount to NAV Generally, very close to actual NAV of scheme

Availability Fund itself Through exchange where listed Through exchange where listed

Intra-Day Trading Not possible Expensive Possible

Q. What are the benefits of ETFs? A. 1. Can be easily bought/sold like any other stock on the exchange through Stock Exchange Member’s terminals across the country. 2. Can be bought/sold anytime during market hours at prices that are expected to be close to actual NAV of the schemes. Thus, investor invests at real-time prices as opposed to end of day prices of open ended mutual fund schemes. 3. No separate form filling for buying/selling units. It is just a phone call to your broker or a purchase/sale through online trading platform provided by the broker of the investor. 4. Ability to put limit orders. 5. Minimum investment for an ETF is one unit. 6. An investor can get a consolidated view of his investments without adding too many different account statements as the Units issued would be in demat form. 7. Allows diversification of portfolio at one shots thereby reducing scrip specific risk at a low cost. 8. ETFs tend to replicate the performance of the underlying index with low tracking error.

Q. What are the risks associated with investing in ETFs? A. Following are the risks associated with investments in ETFs: • Although the units of ETFs are listed on the exchange for trading, there can be no assurance that an active secondary market will develop or be maintained. • Units of Exchange Traded Funds may trade at prices above or below their NAV. • Tracking error: index ETFs tracks a particular index as its underlying. The returns generated by the ETF can be lower or higher than the underlying ETF.

Q. Is averaging possible in ETFs? A. Equity ETF Unit is traded in the stock exchange in lots of 1 unit. One can buy just like any other share. You can buy at various intervals and average it out.

Q. Will it work in a similar way as in Mutual Fund Systematic Investment Plan (MF SIP)? A. The only difference in ETFs is that you buy units from the secondary market.

Q. What is the role of authorised participant? A. The role of Authorised Participants is to offer liquidity of the units of the scheme on the stock exchange where the units are listed. Authorised Participants may for the purpose of creating liquidity subscribe or redeem the units of the scheme directly with the mutual fund.