UTI Nifty500 Shariah Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 17, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
UTI Nifty500 Shariah Index Fund Direct Growth Plan currently has a NAV of ₹9.7658 as of 16 Sep 2026 and scheme AUM of ₹88 Cr. Its 1-year, 3-year and 5-year returns are 0%, 0% and 0%, and the scheme is tagged High Risk. Our view is that this fund is better suited to investors who understand that a Shariah-screened index strategy can look very different from the broad market and may move unevenly in shorter periods.
With a low expense ratio of 0.0% and a benchmark linked to Nifty 50, the fund is still in an early stage after launching on 23 Feb 2026. The current numbers suggest a product to evaluate for long-horizon, high-tolerance portfolios rather than for short-term return expectations.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹9.7658 as of 16 Sep 2026 |
| AUM | ₹88 Cr |
| Expense Ratio | 0.0% |
| Launch Date | 23 Feb 2026 |
| Min SIP | ₹500 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Index Funds |
| Exit Load | No exit load |
| Fund Managers | Sharwan Kumar Goyal, Ayush Jain, Lokesh Kulthia |
The fund is managed by Sharwan Kumar Goyal, Ayush Jain and Lokesh Kulthia.
Source data date: as of 16 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -5.42% | -4.41% |
| 3M | -3.27% | -3.60% |
| 1Y | Data not available | Data not available |
| 3Y | Data not available | Data not available |
| 5Y | Data not available | Data not available |
The fund’s short-term profile has been weaker than the benchmark at times, especially over 1 month where it fell more than the index. Over 3 months, the gap narrowed and the fund was slightly ahead of the benchmark, which tells us the recent path has not been one-directional.
That pattern matters because the holding pattern in the NAV series also looks uneven rather than smooth. There were stretches of relative firmness followed by give-back, so the fund has not yet shown the kind of stable compounding investors usually want before leaning on it for core allocation.
Longer-term return figures are not available yet because the scheme launched only in 2026. For now, our view is that the evidence base is limited and the emphasis should be on how the fund behaves across market phases rather than on a longer record that does not yet exist.
Compared with the benchmark, the fund has not established a consistent edge in the available periods. The small outperformance over 3 months is useful, but it does not override the weaker 1-month outcome or the fact that the scheme is still building history.
Source data date: as of 16 Sep 2026
Should you BUY or HOLD UTI Nifty500 Shariah Index?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding UTI Nifty500 Shariah Index? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| UTI Nifty500 Shariah Index Fund Direct Growth Plan | Data not available | Data not available | Data not available |
| ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan | 29.31% | 30.01% | Data not available |
| Tata Nifty Capital Markets Index Fund Direct Growth Plan | 21.45% | Data not available | Data not available |
| Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan | 21.13% | Data not available | Data not available |
| Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan | 20.68% | Data not available | Data not available |
| ICICI Pru Nifty Pharma Index Fund Direct Growth Plan | 17.57% | 18.84% | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
The current fund’s available short-term return is well below the strongest peer figures in the table, while the peer set itself shows that some rival index funds have produced meaningfully higher 1-year gains. That makes the current fund look modest in recent relative terms.
On longer horizons, the comparison is harder because this scheme does not yet have 3-year or 5-year history, whereas a few peers do. Where those figures are available, they are clearly ahead on absolute return, so the current fund does not yet have a longer-record argument to offset its young age.
The result is a split picture: the peer set shows what stronger established compounding can look like, but this fund has not had time to build that record. For investors, that means the decision rests more on fit, screening style and risk acceptance than on a mature performance history.
Source data date: as of 16 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Eq – Infosys Ltd. | IT | 6.48% |
| Eq – Tata Consultancy Services Ltd. | IT | 3.99% |
| Eq – Sun Pharmaceuticals Industries | Healthcare | 3.43% |
| Eq – Hindustan Unilever Ltd | FMCG | 2.85% |
| Eq – Hindalco Industries Ltd. | Non – Ferrous Metals | 2.4% |
| Eq – HCL Technologies Ltd. | IT | 2.26% |
| Eq – Ultratech Cement Ltd. | Construction Materials | 2.21% |
| Eq – Asian Paints (India) Ltd. | Chemicals | 1.96% |
| Eq – Nestle India Ltd. | FMCG | 1.75% |
| Eq – Tech Mahindra Ltd. | IT | 1.69% |
The largest holding, Infosys Ltd., carries a 6.48% weight, which is meaningful but not dominant on its own. The tenth holding is at 1.69%, so the drop from the top name to the tenth is fairly steep and suggests that the portfolio’s visible leaders matter more than the tail of smaller positions.
The top 10 holdings together account for approximately 29.02% of the portfolio, and the scheme discloses 62 holdings overall. That tells us the fund is spread across a fairly long tail, even though the largest positions still matter in day-to-day tracking.
For investors, that mix may mean two things at once: a few large names could influence outcomes, while the broader list of holdings may dilute single-stock dependence. Because the portfolio is not fully concentrated in the top positions, performance may reflect a blend of the strongest names rather than one or two holdings alone.
To see all holdings, visit the UTI Nifty500 Shariah Index Fund Direct Growth Plan page
Source data date: as of 16 Sep 2026
Who should invest
This fund suits investors who can tolerate High Risk and are comfortable with a young scheme that has not yet built a long return record. The available short-term numbers are mixed against the benchmark, and that makes patience more important than chasing near-term momentum.
It is more appropriate for a longer horizon, where the investor is willing to accept periods of underperformance in exchange for exposure to a screened index approach. The main trade-off is straightforward: you get a rules-based equity portfolio with a low expense ratio, but you must accept that the current performance history is still very limited.
For someone comparing it with peers, the key question is not whether it has already proven itself over many years, because it has not. The more relevant question is whether the screening style and risk profile fit the rest of the equity allocation.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load: No exit load.
Source data date: as of 16 Sep 2026
Frequently asked questions
What is the current NAV of UTI Nifty500 Shariah Index Fund Direct Growth Plan?
The current NAV is ₹9.7658 as of 16 Sep 2026.
What are the fund’s recent returns?
The fund’s 1-year, 3-year and 5-year returns are not available as meaningful historical figures yet because the scheme launched in 2026. In the available shorter windows, the 1-month return is -5.42% and the 3-month return is -3.27%.
How has the fund done versus the benchmark?
In the available shorter periods, the fund was weaker than the benchmark over 1 month but slightly ahead over 3 months. That points to a mixed early record rather than a clear, persistent edge.
How does it compare with peer funds on return data?
Peer funds with available return data show stronger 1-year figures, including 29.31%, 21.45%, 21.13%, 20.68% and 17.57%. This fund does not yet have a comparable long return history.
What is the minimum SIP amount?
The minimum SIP amount is ₹500.
Who manages the fund and what is the exit load?
The fund is managed by Sharwan Kumar Goyal, Ayush Jain and Lokesh Kulthia. The exit load is no exit load.
Bottom line
UTI Nifty500 Shariah Index Fund Direct Growth Plan is still an early-stage scheme, so its mixed short-term behaviour and lack of longer return history matter more than headline-looking comparisons. The available peer set shows stronger longer records where those are available, while this fund has not yet built that kind of track record. Its High Risk profile, low expense ratio and 62-holding portfolio with a 29.02% top-10 weight profile make it a niche equity option that may suit investors who want a screened index approach and can wait for the record to mature.
Published on 17 September 2026 at 3:08 PM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.