UTI Mutual Fund has launched an open-ended debt scheme – UTI Corporate Bond Fund that will predominantly invest in highest rated and AA+ rated corporate bonds.
The NFO is currently open for subscription and will close on August 8, 2018. Sudhir Agrawal and Sunil Patil will co-manage the fund.
The scheme aims to generate returns with low risk and high liquidity by investing at least 80% in a portfolio of high quality bonds. The fund will adopt an accrual strategy in corporate bonds with an average maturity of 3 to 4 years.
In a press release, Suraj Kaeley, Group President (Sales and Marketing), UTI AMC said, “Investors will be able to reap benefit of tax efficient returns and liquidity, along with the possibility to lock in yields prevalent at the time of investment.”