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An open ended debt fund investing in a mix of good quality securities and the portfolio having Macaulay Duration between 4-7 years
An open ended medium to long duration debt fund with a portfolio mix of debentures, bonds and government securities. The fund is suitable for investors who are seeking high accrual exposure with a long-term investment horizon. The duration of the fund is actively managed to take advantage of opportunities presented by the market while keeping in view the near to short term macro-economic environment.
NIl
SWP/Redeem/SIP/STRIP/Switch
Relatively High interest rate risk and Relatively Moderate Credit Risk (B-III)
(1) The Portfolio Macaulay duration would be between 4 year to 7 years: Debt Instruments (including securitised debt)*: 50-100% (Low to Medium) Money Market Instruments (including Triparty Repos on Government Securities or treasury bill & Repo): 0-35% (Low) (2) The Portfolio Macaulay duration under anticipated adverse situation is 1 year to 7 years: Debt Instruments (including securitised debt)*: 50-100% (Low to Medium) Money Market Instruments (including Triparty Repos on Government Securities or treasury bill & Repo): 0-50% (Low) *Debt securities will also include Securitised Debt, which may go up to 50% of the portfolio
The investment objective of the scheme is to generate optimal returns with adequate liquidity by investing in debt and money market instruments such that the Macaulay duration of the portfolio is between 4 years and 7 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
Long Duration
An open ended medium term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 4 years and 7 years. A Relatively High interest rate risk and Relatively Moderate Credit Risk (B-III)
- The Fund endeavours to benefit from a falling interest rate environment through active duration management
- The Fund seeks to provide stable returns in the long term by active management of duration and credit risk
- The Fund has the flexibility to invest in short end of the curve if the invetment environment is not conducive for long or medium duration papers
This product is suitable for investors who are seeking*: Optimal returns with adequate liquidity over medium to long term. Investment in Debt & money market instruments. Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
- Investors looking for overall portfolio diversification
- Investors who want growth with limited downside risk to their portfolio
- Investors looking for tax efficient returns
- Retirees looking for moderate and stable returns with low volatility
- First time mutual fund investors
An open ended medium to long duration debt fund which is a well diversified portfolio with a mix of debentures, bonds and government securities. The fund is suitable for investors who are seeking high accrual exposure with a long-term investment horizon.
UTI Bond Fund is an open ended medium term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 4 years and 7 years. (Please refer to page no.14 of SID on which the concept of Macaulay duration has been explained)
Investor should invest in Bond Funds to capitalize on falling interest rate environment and to build their long term debt portfolio
Investors can simply log on to utimf.com or use UTI Mutual Fund Application and start investing subject to KYC compliance. Investors may also approach nearest UTI Financial Centers (UFCs). Alternatively, you may also approach your mutual fund distributor, financial advisor or various online platform for investments.
UTI Bond Fund will attract capital gains tax if the redemption value is more than the purchase price. The gains can either be short term or long term in nature.
If you hold units for 3 years or less, the gains made are subject to Short-Term Capital Gains Tax and are taxed as per your income slab. If you hold the units for more than three years, the gains are subject to Long-Term Capital Gains Tax which is taxed at 20% and you would get the benefit of indexation (available to debt funds). Indexation accounts for the effect of inflation in the acquisition purchase cost i.e. the purchase price is increased to adjust for inflation (using an index provided by the Government) before calculating the capital gain. Thus, it reduces the overall tax liability.