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Union MF and UTI MF have launched gilt funds. Here are the details that you need to know.
Union Gilt Fund
Union MF has launched Union Gilt Fund, an open-ended debt scheme investing a minimum of 80% of its total assets in government securities.
CRISIL Dynamic Gilt Index will be the benchmark index. The new fund is open for subscription from Jul 18, 2022 to Aug 1, 2022.
In a press release, G. Pradeepkumar, CEO, Union MF said, “We believe this scheme will serve investors who are looking for credit risk free returns over a period of three years or more.”
Parijat Agrawal, Head-Fixed Income, Union MF said, “At current levels, it has a possible dual advantage in the form of higher accrual income, as also the possibility of capital gains as and when interest rate cycles reverse in future.”
UTI Gilt Fund with 10 year Constant Duration
UTI MF has launched UTI Gilt Fund with 10 year Constant Duration, an open-ended debt scheme investing in government securities having a constant maturity of 10 years.
CRISIL 10-Year Gilt Index will be the benchmark index. The fund is open for subscription between Jul 18, 2022 and Jul 26, 2022.
Talking about the new fund, Anurag Mittal, EVP & Deputy Head of Fixed Income, UTI MF said, “While diversified allocation to different asset classes like equity, fixed income & gold has become an adage for investors, sovereign allocation within fixed income can offer a better value proposition by minimising credit risk, providing high liquidity while maintaining tax efficiency needs to be given more consideration.”
