The NFO opens on January 27, 2014 and closes on January 30, 2014.
UTI Mutual Fund (UTI) announced the launch of its new open-end scheme called “UTI –Banking & PSU Debt Fund. The NFO opens on January 27, 2014 and closes on January 30, 2014. The scheme will re-open for continuous purchase and redemption from February 6, 2014 onwards.
The investment objective of the scheme is to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of predominantly debt and money market securities by Banks and Public Sector Undertakings (PSUs).
Sudhir Agarwal the Fund Manager of the scheme said, “The scheme will primarily invest in securities rated AAA/A1+. The portfolio of the scheme will be actively managed with relative lower risk and volatility and will capitalize on the spreads available at the shorter end of the yield curve. Portfolio duration is likely to be maintained between 12 to 18 months.”
|
Type of Instruments |
Indicative Allocations (% of total assets) |
Risk Profile |
|
|
Minimum |
Maximum |
||
|
Debt Instrument and Money Market Securities issue by Banks and PSUs |
80% |
100% |
Low to Medium |
|
Debt (including government securities) and Money Market Securities issued by entities other than Banks and PSUs |
0% |
20% |
Low to Medium |
The scheme will be benchmarked against CRISIL Short term Bond Fund Index. The scheme will charge an exit load if investors redeem before 30 days. No exit load will be charged after 30 days.
