UTI Mutual Fund (UTI) launches 'UTI Long Duration Fund', an open-ended debt scheme investing in debt and money market instruments such that the portfolio Macaulay Duration is above 7 years, the company said via an exchnage filing.
The scheme will have a relatively high interest rate risk and relatively low credit risk. The NFO starts on March 6, 2023 and closes on March 15, 2023.
The scheme aims to generate optimal returns with adequate liquidity by investing in a portfolio of debt and money market instruments.
However, there can be no assurance that the investment objective of the scheme will be achieved. The scheme does not guarantee/ indicate any returns.
Vetri Subramaniam, CIO, UTI AMC Ltd, commented on the launch, “It's important to diversify your investment portfolio by investing in a mix of equity and fixed income funds. This will help you mitigate risk and reduce portfolio volatility. Long duration fixed income funds are an appropriate option for investors with long term financial goals, such as saving for retirement or funding child’s education, etc. These funds can provide a relatively stable source of income, compounding and potential capital appreciation over a longer investment horizon.”
Salient features of UTI Long Duration Fund
Eligible Investors
o Investors with long-term investment goals
o Investors aiming to diversify their retirement portfolio o Investors who have a low-risk appetite for credit exposures, seeking a high-quality portfolio and tax-efficient reasonable returns
New Fund Offer Price
o During the NFO period, the units of the scheme will be sold at face value, i.e., INR 10/- per unit
Minimum Application Amount
o The minimum application amount is INR 5,000/- and in multiples of INR 1/- thereafter
Plans and Options Available
o Regular Plan and Direct Plan – Both Plans offer Growth & IDCW options Load Structure
o Entry Load: NA
o Exit Load: Redemption/Switch out
a) within 3 years from date of allotment:
I. Up to 10% of allotted units: NIL
II. Beyond 10% of allotted units: 1%
b) After 3 years from the date of allotment: NIL
Benchmark Index
o CRISIL Long Duration Fund AIII Index
