UTI's new fund for investors eyeing a low cost fund Investors looking for a relatively low-cost fund based on quantitative strategies could consider the New Fund Offer (NFO) of UTI Nifty 200 Momentum 30 Fund. Financial advisors said investors with lower risk appetite - especially first time - could avoid this product. The NFO closes on March 4.The fund will track the Nifty200 Momentum 30 index, but it is different from a traditional passive index scheme. Such strategies try to outperform the benchmark index. In this scheme, stocks will be selected based on their momentum score, which is determined based on its six- and 12-month price returns, after adjusting for its daily price volatility. Stock weights are based on a combination of the stock's normalised momentum score and its free-float market capitalisation. Individual stock exposure will be capped at 5%. "It's a rule-based quant fund and such strategies work well over the longer term. However, it carries higher risk and should be treated it like a midcap fund," says Vijay Kuppa, founder, Orowealth.Wealth managers said momentum is aggressive investment style and carries higher risk and the fund could see period of relative underperformance if there is a sharp change in market cycles or when there is sharp recovery or drop.