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An open ended debt fund investing in a mix of good quality securities and the portfolio having Macaulay Duration between 3-4 years
UTI Medium Term Fund invests in diversified portfolio consisting of debt & money market instruments along with tactical allocation to government securities. The scheme primarily invests in corporate bonds with the aim to generate reasonable income while capital appr+I2eciation would likely be generated through duration management. Investors having an invetsment horizon of more than 3 years may look at this fund
For subscriptions received w.e.f. October 1st, 2021 applicable Exit load: Redemption / Switch out within 12 months from the date of allotment – (i) NIL for upto 10% of the allotted Units (ii) 1.00 % for beyond 10% of the allotted Units.
SWP/Redeem/SIP/STRIP/Switch
Relatively High interest rate risk and Relatively High Credit Risk (C-III)
(1) The Portfolio Macaulay duration would be between 3 years to 4 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) Units issued by REITs & InvITs: 0-10% (Medium to High) (2) The Portfolio Macaulay duration under anticipated adverse situation is 1 year to 4 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) Units issued by REITs & InvITs: 0-10% (Medium to High) *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 reasonable income by investing in debt & money market securities such that the Macaulay duration of the portfolio is between 3 to 4 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.
Medium Duration
An open ended medium term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 years and 4 years. A Relatively High interest rate risk and Relatively High Credit Risk (C-III)
• The Fund has a diversified portfolio of government securities and other debt instruments • The Fund seeks to provide stable returns in the medium to 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*: Reasonable income over the 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
UTI Medium Term Fund invests in diversified portfolio consisting of debt & money market instruments along with tactical allocation to government securities. The scheme primarily invests in corporate bonds with the aim to generate reasonable income while capital appreciation would likely be generated through duration management. Investors having an investment horizon of more than 3 years may look at this fund
UTI Medium Term Fund is an open ended medium term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 years and 4 years. (Please refer to page no. 19 of SID on which the concept of Macaulay duration has been explained)
•The scheme aims to generate superior risk adjusted returns from both interest income and capital gains
•Maintains well-diversified portfolio of government securities and debt instruments with a portfolio duration of 3 to 4 years
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 Medium Term 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.