The Indian stock market has been among the standout performers globally since the pandemic ended, with the benchmark Bombay Stock Exchange Sensex Index and the National Stock Exchange Nifty 50 Index – tracking the top capitalized counters – charting five-year returns of over 60% each. The Nifty500 Shariah Index has kept pace with this overall performance trend and UTI Asset Management became the second local firm to launch an Islamic equities fund to take advantage of this passive investment opportunity in recent months.
Together with the Quantum Ethical Fund, this UTI Nifty500 Shariah Index Fund brings the total to six Shariah compliant fund offerings in India as tracked by the IFN Investor Funds Database.
Launched on 5th February 2026, this open-ended investment scheme will place at least 95% of the fund’s NAV in equities, while relative daily returns of the constituent holdings are to be within 2% of the benchmark Nifty500 Shariah Total Return Index.
The fund manager may obtain an exposure to equity derivatives of constituents of the underlying index for a short duration of up to seven business days when the underlying securities are unavailable, insufficient or for portfolio rebalancing during a change in the index or in case of corporate actions.
“This launch reflects the continued evolution of India’s Shariah compliant investment landscape, where investors are increasingly seeking low-cost, benchmark-aligned allocation tools alongside actively managed strategies,” the firm’s representative said.
With a minimum investment of INR1,000 (US$11) and a growth structure that reinvests income, the fund targets individual and institutional investors seeking medium- to long-term capital growth and those who are willing to accept market volatility.
*Disclaimer: The opinions and viewpoints expressed in this Fund Profile do not constitute recommendations for any fund highlighted. The information presented is not investment advice and should not be treated as such.
| UTI Nifty500 Shariah Index Fund | |
| Fund manager | UTI Asset Management |
| Launch date | 5th February 2026 |
| Asset class | Equities |
| Base currency | Indian rupees (INR) |
| Initial investment | INR1000 (US$11) |
| Investment objective | To achieve returns equivalent to the Nifty500 Shariah Index |
| Benchmark | Nifty500 Shariah Total Returns Index |
| Risk profile | High |
| Distribution | Automatically reinvested |
| Management fee | 1% |
Source: UTI Asset Management
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