India: UTI Mutual Fund (UTI) 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. The fund has a relatively high-interest rate risk and relatively low credit risk. The New Fund Offer opened on 18 July 2022 and closes on 26 July 2022.
The Scheme’s investment objective is to generate optimal returns with high liquidity by investing in a portfolio of government securities such that the weighted average portfolio maturity is around 10 years. However, there can be no assurance that the Scheme’s investment objective will be achieved. The Scheme does not guarantee/ indicate any returns.
Mr. Anurag Mittal, EVP & Deputy Head of Fixed Income, UTI AMC Ltd. and the Scheme’s Fund Manager, commented on the launch, “Aiming to offer new investment opportunities via varied products, our latest fund launch, UTI Gilt Fund with 10 year Constant Duration, is a suitable offering for strategic allocation in a duration fund with sovereign exposures in the UTI Mutual Fund product suite. 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.”
Salient features of UTI Gilt Fund with 10 year Constant Duration
- Eligible Investors
o Investors with long-term investment goals, looking for high liquidity in their investment portfolio
o Investors who have a low-risk appetite for credit exposures, seek a high-quality portfolio, are comfortable with interest rate volatility, and seeking 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., Rs. 10/- per unit
- Minimum Application Amount
o The minimum application amount is Rs. 5,000/- and in multiples of Rs. 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: NIL
- Benchmark Index
o CRISIL 10-Year Gilt Index
Product Label & Riskometer
|UTI Gilt Fund with 10 year Constant Duration
An open-ended debt scheme investing in government securities having a constant maturity of 10 years. Relatively High Interest rate risk and Relatively Low Credit Risk
|This product is suitable for investors who are seeking:*
• Reasonable income over long term
• Investment in government securities having a constant maturity of 10 years
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
|Potential Risk Class Matrix|
|Credit Risk →||Relatively Low
|Interest Rate Risk ↓|
|A-III: Relatively High Interest Rate Risk and Relatively Low Credit Risk|
Note: Product labeling assigned during the New Fund Offer (NFO) is based on an internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.
Mutual Fund investments are subject to market risks. Read all scheme related documents carefully.