Best UTI Mutual Funds in India for 2026

• Summary
• UTI mutual funds are financial products that collect money from investors and invest in various securities, depending on the fund’s objective.
• The most popular UTI funds in 2026 are UTI Nifty 50 ETF with a 5 Year CAGR of 9.29%, and UTI Nifty 50 Index Fund Direct with a 5 Year CAGR of 9.11%, as of 31st August, 2026.
• All these mutual funds provide varying degrees of risk and opportunities. For example, equity-oriented funds can be appropriate for high-risk investors with a long-term investment approach, while others might be more appropriate for conservative investors.
• Before you invest in any fund, you should consider its historical performance, expense ratio, benchmark, portfolio, AUM, objective, and risk level. Investors can use SIPs to invest regularly, and direct plans usually have lower costs than regular plans.

UTI mutual funds are investment schemes that pool money from investors and invest it in assets such as stocks, bonds, and other securities. UTI offers a wide range of schemes across equity, debt, index, hybrid, liquid, and other categories.

Investors in 2026 could opt for funds such as UTI Flexi Cap Fund, UTI Nifty 50 Index Fund, UTI Healthcare Fund, UTI Transportation & Logistics Fund, and UTI Aggressive Hybrid Fund, depending on their financial goals and risk appetite.

Best 10 UTI Mutual Funds: Quick Comparison

The following table provides a quick comparison of the selected UTI mutual funds ranked based on AUM as of 31st August, 2026

Fund Name	3 Yr CAGR	5 Yr CAGR	Benchmark 5 Yr return	AUM	Expense ratio	Minimum SIP	Risk
UTI Nifty 50 ETF	8.93%	9.29%	10.70%	₹73,423 Cr	0.04%	–	Very High
UTI BSE Sensex ETF	7.10%	8.22%	10.70%	₹57,212 Cr	0.04%	–	Very high
UTI Nifty 50 index Dir	8.75%	9.11%	10.70%	₹29,603 Cr	0.18%	₹500	Very High
UTI liquid dir	6.98%	6.32%	–	₹26,728 Cr	0.14%	₹100	Moderate
UTI flexi Cap Dir	10.58%	6.93%	11.98%	₹24,036 Cr	0.83%	₹500	Very High
UTI Money market Dir	7.38%	6.66%	–	₹18,782 Cr	0.13%	₹500	Moderate
UTI Midcap dir	14.49%	14.40%	17.76%	₹12,379 Cr	0.74%	₹500	Very High
UTI Large Cap Dir	9.52%	8.84%	10.70%	₹12,303 Cr	0.77%	₹100	Very High
UTI Arbitrage Dir	7.48%	6.65%	–	₹11,152 Cr	0.24%	₹500	Low
UTI Value Dir	14.42%	12.87%	11.98%	₹9,659 Cr	0.94%	₹500	Very High

Top 10 UTI Mutual Funds in India

The following UTI mutual funds analysis covers performance, costs, risk, benchmark, and portfolio concentration.

1. UTI Nifty 50 ETF

UTI Nifty 50 ETF is a passive investment vehicle for giving exposure to the securities in the Nifty 50 Index. As of 31st, August, 2026, it returned a 3-year CAGR of 8.93% and a 5-year CAGR of 9.29%, compared with the benchmark’s 5-year return of 10.70%. It has AUM of ₹73,423 crore and an expense ratio of 0.04%. It is a very high-risk-profiled fund. Value Research has listed the scheme under the ETF – Nifty 50 TRI category.

• Strength: The most striking features of the fund are its extremely low expense ratio and its exposure to large-cap Indian stocks. Its large AUM makes it an established UTI ETF.

• Drawbacks: Its 5-year return is inferior to the benchmark return. Investors must be able to stomach volatility in equity markets.

2. UTI BSE Sensex ETF

UTI BSE Sensex ETF provides passive exposure to the companies that make up the BSE Sensex Index. As of 31st, August, 2026, UTI BSE Sensex ETF has achieved a CAGR of 7.10% and 8.22% over the last three and five years, respectively, compared to the benchmark return of 10.70%. The asset under management (AUM) of UTI BSE Sensex ETF is ₹57,212 crore, whereas the expense ratio is only 0.04%. The risk level of this fund is very high.

• Strength: This fund offers a low-cost, passive way to invest in Sensex companies. The expense ratio of 0.04% is really impressive for a passive strategy.

• Drawbacks: Its past 5-year return is lower than the benchmark as per the supplied data. It is also subject to fluctuations in the equity markets.

3. UTI Nifty 50 Index Fund Direct

This scheme from UTI Mutual Fund is suitable for investors seeking passive exposure to the Nifty 50. UTI Nifty 50 Index Fund Direct scheme had a 3-year CAGR of 8.75% and a 5-year CAGR of 9.11%. In comparison, the performance benchmark returned 10.70% over the 5 year period. Its assets under management stood at ₹29,603 crore, with an expense ratio of 0.18%, and the minimum SIP was ₹500. It comes with a Very High risk category. In addition, UTI also offers the Nifty 50 Index Fund for investing.

• Strengths: It helps provide diversified exposure to large-cap companies through an easy indexing approach. The expense ratio is comparatively low for an equity scheme.

• Drawbacks: It does not meet its benchmark performance as per the given 5-year figures.

4. UTI Liquid Fund Direct

UTI Liquid Fund Direct is a relatively safer investment compared with the other equity-based funds mentioned in this report. As of 31st, August, 2026, this fund has achieved a 3-year CAGR of 6.98% and a 5-year CAGR of 6.32%. This fund’s AUM was at ₹26,728 crore, with an expense ratio of 0.14% and minimum SIP of ₹100. This fund is of Moderate risk, distinguishing it from the other very high-risk equity funds mentioned above.

• Strengths: The moderate risk and minimum SIP of this fund make it a relatively safe investment and easily available for small investors. This fund could be helpful for temporarily parking money.

• Drawbacks: Return potential is lower than that of other equity-based funds. Thus, it will not be a good choice for investors pursuing an aggressive growth strategy.

5. UTI Flexi Cap Fund Direct

UTI Flexi Cap Fund Direct allocates investments across different market caps, giving the fund manager the scope to invest in large-, mid-, and small-cap companies. UTI Flexi Cap Fund Direct had returned a CAGR of 10.58% over the last 3 years and 6.93% over the last 5 years. As against the benchmark, which had delivered 11.98% CAGR for the past 5 years. The AUM was ₹24,036 crore, the expense ratio was 0.83%, and the minimum SIP amount was ₹500. The Very High risk rating is assigned to it.

• Strength: This flexibility enables the portfolio to be allocated across market caps depending upon opportunities. Hence, equity allocation can happen through a single fund.

• Drawback: Performance over 5 years is under par relative to the benchmark based on the available information. The expense ratio of 0.83% is also higher than that of index mutual funds.

6. UTI Money Market Fund Direct

UTI Money Market Fund Direct invests mainly in money market securities and is considered a moderate-risk fund. As of 31st, August, 2026, the fund’s 3-year CAGR is 7.38%, whereas its 5-year CAGR is 6.66%. This particular fund has an AUM of ₹18,782 crore, an expense ratio of 0.13%, and a minimum SIP amount of ₹500.

Strength: This fund offers moderate risk investments with a relatively low expense ratio.

Drawback: Returns are relatively low when compared to equity-based funds.

7. UTI Mid Cap Fund Direct

This is a mid-cap fund and showed one of the best performances among the UTI funds. It had a 3-year CAGR of 14.49% and a 5-year CAGR of 14.40%, while the benchmark returned 17.76% over 5 years. Its AUM is ₹12,379 crore, while its expense ratio is 0.74%. Its minimum SIP is ₹500. This is a Very High-risk fund.

• Strength: This has one of the best 3- and 5-year CAGRs in the given UTI funds dataset. This helps investors to invest in mid-cap stocks, which may have the potential for high growth.

• Drawbacks: Mid-cap stocks exhibit greater volatility during market corrections. Moreover, its 5-year return is less than the benchmark provided.

8. UTI Large Cap Fund Direct

This is an equity fund that primarily holds shares of large, reputable companies. The 3-year and 5-year CAGRs of this fund are 9.52% and 8.84%, respectively, while the benchmark return is 10.70%. UTI Large Cap Fund Direct has an AUM of ₹12,303 crore, an expense ratio of 0.77%, and a minimum SIP of ₹100. Yet, despite all this, UTI Large Cap Fund is still regarded as Very High Risk.

• Strength: The UTI Large Cap Fund provides exposure to large, reputable companies, offering investors an opportunity to diversify their equity portfolios. A minimum SIP of ₹100 is also a great way to make regular investments.

• Drawbacks: The ROI over 5 years is below benchmark ROI as per the available data. Also, the expense ratio of UTI Large Cap Fund is relatively high compared to passive UTI index funds.

9. UTI Arbitrage Fund Direct

The UTI Arbitrage Fund Direct reported a 3-year CAGR of 7.48% and a 5-year CAGR of 6.65%. It had an AUM of ₹11,152 crore, an expense ratio of 0.24%, and a minimum SIP of ₹500. The UTI Arbitrage Fund Direct has been rated a low-risk scheme, making it one of the low-risk options on the list. The SEBI rating also includes the UTI Arbitrage Fund under the UTI schemes.

• Strength: Being a low-risk option makes it a good choice for those who prefer low-risk investing over high-risk investments like equity mutual funds. Additionally, it has a 0.24% expense ratio, which is moderate.

• Drawbacks: Its return on investment may be lower than that of other equity funds on the list.

10. UTI Value Fund Direct

UTI Value Fund Direct adopts a value-based investment strategy and achieved a 3-year CAGR of 14.42% and a 5-year CAGR of 12.87%. As of 31st, August, 2026, its 5-year return has outperformed the benchmark of 11.98%. UTI Value Fund Direct has an AUM of ₹9,659 crore, an expense ratio of 0.94%, and a minimum SIP of ₹500. The fund carries a very high risk. 

• Strength: Its 5-year returns have been better than those of the benchmark in the given data set and thus one of the better performers in this selection. The value-based strategy it follows may yield benefits as soon as undervalued stocks bounce back.

• Drawbacks: It has Very High risk and has the highest expense ratio (0.94%) in the list of funds considered here.

How did we select these UTI Funds?

Selecting appropriate mutual funds from the UTI category requires much more than assessing performance. We have considered performance, risk, expense, fund structure, portfolio composition, and track record to make a fair comparison of the choices available to investors.

• Performance in the past: Evaluation of the historical performance of the funds in various periods. It will help us to evaluate the performance of the funds in different scenarios.

• Consistency of returns: Consistency in returns is an important characteristic we considered when selecting the funds. Consistency is helpful in evaluating funds for long-term investment.

• Market risk of the funds: Evaluation of each fund on the basis of market risk of the funds. It will help us understand the suitability of the return relative to the risk taken by the investor.

• Fund category: Various kinds of funds, such as flexi-cap, index, sectoral, and hybrid funds, have been considered to offer investors a choice.

• Portfolio of the fund: The portfolio composition and investment strategy were taken into consideration. A diversified portfolio can minimise dependence on a single stock or sector.

UTI Funds Vs Other Fund Categories

UTI mutual funds can be compared with other funds based on their investments, risk level, and returns.

Fund category	Investment Focus	Risk Level	Feature
UTI mutual funds	Equity, debt, hybrid, index, and sector-focused investments	Low to very high	Wide range of schemes suitable for different investment goals, time horizons, and risk profiles
Flexi Cap	Large, mid, and Small caps	Higher	Invest across large-cap, mid-cap, and small-caps without fixed allocation limits
Large cap	Predominantly large companies	Higher	Invest mainly in large, well-established companies with a strong market presence
Mid Cap	Mid-sized companies	Moderate	Invest in medium-sized companies that have the potential to grow into larger businesses.
Small cap	Smaller companies	Moderate	Invest in smaller companies with higher growth potential
Index fund	Tracks an index	Depends on index	Tracks a market index such as the Nifty 50 or Sensex by investing in its constituent stocks.

Benefits and Risks of UTI Mutual Funds

UTI mutual funds offer investors a range of schemes to match their financial goals and risk appetite. 

Benefits:

• UTI Mutual Fund Variety: There are various UTI mutual fund schemes available for varied investment purposes. It is up to the investor to choose the fund as per their investment requirements.

• UTI Mutual Fund Diversification: Diversification in the UTI scheme is achieved by investing in multiple securities rather than a single security.

• Professional Management: The UTI mutual funds are professionally managed by fund managers, who do market analysis and make decisions regarding securities. This may prove helpful to those investors who lack the skills and time to manage their investments.

• Systematic investment plan (SIP): If the investor is eligible to invest in SIPs, he can opt for the same through UTI schemes. In the case of SIPs, the investor makes small investments over time rather than lump-sum investments.

• Investment opportunities: UTI offers a range of options to suit investors’ risk appetites and investment horizons.

Risks:

• Market risk: The UTI fund, with an equity orientation, is subject to stock market fluctuations. The UTI fund can decrease in value due to a poor market environment.

• Uncertain returns: The mutual fund does not offer any fixed or guaranteed returns. It is not certain whether the return would be high or low.

• Risk of sector orientation: Sector funds invest more in a specific industry, so poor performance in that industry can affect the scheme’s overall performance.

• Risk from interest rate fluctuations: The debt fund is subject to these fluctuations. A rise in interest rates may be detrimental to the bond.

• Credit risk: Some debt funds may invest in corporate bonds, so there may be losses if the issuer experiences financial difficulties.

• Costs associated with exiting the scheme: The scheme may impose exit loads when an investor seeks to withdraw funds after a certain period.

Who should consider and avoid UTI mutual funds?

Some UTI mutual funds could be ideal for investors seeking professionally managed investments and a range of options aligned with their investment objectives. Long-term investors might opt for UTI funds focused on equities to pursue capital gains. They might be ideal for investors who prefer investing through SIPs and make wealth slowly but steadily.

Investors should not consider UTI mutual funds based on past returns. Very short-term investors or those with a low tolerance for market volatility may not like equity-focused UTI funds. Sector-based UTI funds may not be an ideal choice for diversified investors, as they may rely heavily on sector-specific performance.

Investors should take into account their investment objectives, risk tolerance, and investment horizon before investing in UTI mutual funds. The fund’s portfolio, expense ratio, risk, and past performance should also be analysed by them.

How to choose a UTI mutual fund?

UTI mutual fund selection will depend on your financial goals, investment horizon, and ability to handle market fluctuations. The following are some things to keep in mind when choosing a fund.

• Define your financial goal: What is your objective behind investing? For example, it may be for money generation, retirement, your children’s education, or any other purpose. You may get the appropriate funds based on your financial objective.

• Determine your risk profile: Know your risk-bearing ability. The equity fund is risky, but the debt fund is low-risk.

• Check your investment period: Select a fund that matches it. You may choose equity funds if you can invest for a long period.

• Assess the performance of the fund: Assess the performance at different times and in different market conditions. Your decision should not be based solely on the fund’s performance.

SIP Vs Lump sum for UTI funds

Both SIP and Lump-sum investing can be used to invest in UTI mutual funds. The right approach depends on your income, available funds, and risk tolerance.

Factor	SIP	LumpSum
Investment method	Invests a fixed amount at regular intervals	Invests a large amount at one time
Suitable for	Investors with regular monthly income	Investors with a sizeable amount available to invest
Risk management	Spreads investment across different market levels	Entire amount is exposed to market conditions from the investment date
Investment discipline	Encourages regular and disciplined investing	Requires greater control over when and how much to invest
Best suited for	Long-term wealth creation through regular investing	Investors who have surplus funds and a suitable investment horizon

Direct Vs Regular UTI mutual funds

UTI mutual funds are available through both direct and regular plans. The main differences are how the investment is purchased and the expenses involved, which can affect overall returns over time.

Factor	Direct UTI Mutual Fund	Regular UTI Mutual Fund
Investment route	Invest directly with the mutual fund house or approved platform	Invest through a distributor or intermediary
Expense ratio	Generally lower	Generally higher due to distributor commissions
Returns	Offer slightly higher returns over the long term, else being equal	Returns may be slightly lower due to higher expenses
Suitable for	Experienced investors who can research and manage investments	Investors who prefer professional guidance
Convenience	Requires more involvement from the investor	Can be convenient for investors seeking support

Taxation of UTI mutual funds

The following table shows the applicable taxes on UTI mutual funds as of 31st August, 2026.

• UTI Equity Mutual Funds

Holding Period	Tax Treatment
Up to 12 months	Short-term capital gains taxed at 20%
More than 12 months	Long-term capital gains exceeding ₹1.25 lakh in a financial year are taxed at 12.5%
LTCG up to ₹1.25 lakh	Exempt, subject to applicable conditions

• UTI Debt Mutual Funds

The tax on debt mutual funds mainly depends on when the investor invests, and for how long. If the investment is made on or after 1st April, 2023, all gains are treated as short-term gains and taxed at the investor’s slab rate, regardless of the holding period. 

And if the investor has invested before 1st April, 2023, then gains are taxed as long-term gains at 12.5% if held for more than 2 years; if held for 2 years or less, then it will be treated as short-term gains, and will be taxed as per the investor’s slab rate.

Other Best Mutual Fund Categories

Besides the funds discussed above, investors can also explore other UTI-focused options 

Best Large Cap Mutual Funds	Best Mid Cap Mutual Funds	Best Small Cap Mutual Funds
Best Flexi Cap Mutual Funds	Best Pharma Mutual Funds	Best Infrastructure Mutual Funds
Best Banking Mutual Funds	Best Technology Mutual Funds	Best Tax-saving Mutual Funds

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