UTI Mutual Fund has launched UTI Equity Savings Fund, an open-ended fund which aims to leverage growth from equity and balance out risk by investing in arbitrage and debt instruments. The NFO opens on August 10, 2018 and will close on August 24, 2018.
The scheme aims to provide capital appreciation and income distribution to investors using arbitrage opportunities, investment in equity and money market instruments. V Srivatsa and Sunil Patil will co-manage the fund.
Talking about the fund, Srivatsa, in a press release said, “The equity portion of the scheme would follow a multi cap approach with a large cap bias. The scheme will pursue top down approach for sector allocation while for stock selection, discount to their intrinsic value or their cheapness relative to their market aggregates would be the key criterion. The scheme will use key metrics such as EV/EBITDA, P/E, book value or asset value as key filters. For the debt portion, the scheme will largely follow an accrual strategy with focus on good credit quality and low duration. There could be tactical allocation to g-sec as well. Arbitrage strategies would largely focus on those opportunities which offer the potential spread arising out of mispricing in cash & future market.”
Suraj Kaeley, Group President (Sales and Marketing), UTI AMC said, “UTI Equity Savings Fund integrates three different investment segments i.e. equity, equity arbitrage and debt with an objective to enhance the portfolio's return and decrease the portfolio volatility. Equity gives an opportunity to unlock growth opportunities while arbitrage & debt portion moderates volatility, brings stability and facilitates income for the scheme.”