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An open-ended debt scheme investing in a portfolio of high quality AAA/equivalent rated corporate bonds
• UTI Corporate Bond Fund is positioned as an accrual-oriented income fund to capture the yield movement at the short to medium end (1 to 5 year) of the curve. • The fund intends to invests in AAA/equivalent rated corporate bond. • Fund aims to generate reasonable income and capital appreciation by investing in high credit quality debt instruments. • Investors may look at UTI Corporate Bond Fund as a part of the core fixed income portfolio allocation for an investment horizon of 2 years and above.
Nil
SWP/Redeem/SIP/STRIP/Switch
Relatively High interest rate risk and Relatively Low Credit Risk (A-III)
Corporate Debt rated AA+ and above (including securitized debt*): 80-100% (Low to Medium) Corporate debt (other than stated above) and Money Market Instruments: 0-20% (Low to Medium) Units issued by REITs & InvITs: 0-10% (Medium to High) * Investments in securitised debt, if undertaken, shall not exceed 50% of the net assets of the Scheme
The investment objective of the scheme is to generate optimal returns by investing predominantly in AA+ and above rated corporate bonds. However, there can be no assurance that the investment objective of the scheme will be realized. The Scheme does not guarantee/indicate any returns.
Corporate Bond
An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds. A Relatively High interest rate risk and Relatively Low Credit Risk (A-III)
- Fund seeks to capture yield movements at the short to medium (1 to 5 year) segment of the curve, depending on the interest rate outlook & yield spreads.
- A corporate bond debt fund focusing inb accrual-oriented income strategy
- Fund intends to invest 100% portfolio in AAA/ equivalent assets
- Up to 72%* allocation in higher credit quality corporate bonds *As per the Liquidity at Risk framework specified by SEBI or any other regulations from time to time
This product is suitable for investors who are seeking*: optimal returns over the medium to long term to invest predominantly in AA+ and above rated corporate debt RISKOMETER 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 debt fund investing predominantly in AAA/equivalent rated corporate bonds and positioned as an accrual-oriented debt fund with an endeavor to capture yield movement in the 1 to 5 years segment with a quality bias
UTI Corporate Bond fund is an open ended debt scheme predominantly investing in AAA and AA+ rated corporate bonds
•Investor who want to build their core debt portfolio for the medium term investment horizon can look at investing in UTI Corporate Bond Fund
• Conservative investing looking for seeking optimal return with relative stability may look at UTI Corporate Bond Fund as the fund invests in highly rated debt instruments
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 Corporate 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.
• UTI Corporate Bond Fund would invest high credit quality instruments (min. 80% investment in AAA & AA+ rated instruments) • The fund aims to generate reasonable income and capital appreciation by investing in debt instruments with shorter maturity (1 to 3 years)