Publish Date:
UTI Mutual Fund has launched a new scheme – UTI Gilt Fund with 10 year Constant Duration
It is 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.
Accordingly, the investment objective of the scheme is to generate optimal returns with high liquidity by investing in a portfolio of government securities such that weighted average portfolio maturity is around 10 years. However there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee / indicate any returns.
Under normal circumstances, UTI Gilt Fund with 10 year Constant Duration will hold an allocation of 80% to 100% of its assets in Securities issued by the Central and State Governments, and 0% to 20% of its assets in Triparty Repos on Government Securities or treasury bill, Repo, Reverse Repo on Government Securities & Money Market instruments. The Scheme may also take exposure to: Derivatives up to 50% of the net assets of the Scheme.
As per the Scheme Information Document, UTI Gilt Fund with 10 year Constant Duration aims to generate optimal returns with high liquidity by investing in a portfolio of government securities such that weighted average portfolio maturity is around 10 years. The Scheme shall endeavour to develop a well-diversified portfolio of debt and other instruments.
Though every endeavour will be made to achieve the objective of the Scheme, the AMC/Sponsors/Trustee do not guarantee that the investment objective of the Scheme will be achieved. No guaranteed returns are being offered under the Scheme.
UTI Gilt Fund with 10 year Constant Duration’s performance will be benchmarked against CRISIL 10 Year Gilt Index.
The fund will be managed by Mr Anurag Mittal.
The NFO opens for subscription on July 18, 2022 and closes on July 26, 2022. The scheme will reopen for continuous sale and repurchase on August 03, 2022.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and any amount thereafter.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum Capital Withdrawal option.