UTI Mutual Fund has introduced UTI Corporate Bond Fund, a new open ended debt scheme. The NFO for the scheme has opened for subscription on July 23, 2018, and will close on August 8, 2018.
Sudhir Agrawal and Sunil Patil are the fund managers of the UTI Corporate Bond Fund.
The main objective of the new open ended debt scheme is to produce optimal returns with low risk and high liquidity by making an investment of at least 80 percent in a portfolio of high quality or high rated bonds, said the fund manager Agrawal.
The new open ended debt scheme will be implementing a “buy and hold investment style,” added Agrawal. According to the investment style, the investments would be done in corporate bonds with a maturity of three to four years to generate growth income, further added Agrawal.
The new UTI Mutual Fund Scheme will mainly invest in highest rated and AA+ rated corporate bonds.
The new open ended debt scheme will invest 80 percent to 100 percent of total asset allotted for the fund in Corporate debt rated AA+ and highest rated instruments (including securitized debt), 20 percent in Corporate debt instruments (other than securitized debt) and money market instruments, and 10 percent in units issued by REITs & InvITs.
The scheme will be available at a face value of 10 Rupees per unit, during the NFO period. The minimum investment amount of the scheme will be 5,000 Rupees for the initial investment and the additional purchase amount will be 1,000 Rupees. There will be no entry or exit load for this open ended debt scheme.
The performance of the UTI Corporate Bond Fund is benchmarked against CRISIL Corporate Bond Composite Index.
The new UTI Mutual Fund scheme is open to Indian residents, non-resident Indians, banks, institutions, financial institution, eligible trusts, FPI (Foreign Portfolio Investor), etc., reported The Economic Times.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]