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An open-ended debt fund investing primarily in overnight securities
- An open ended debt scheme investing in overnight securities.
- Investments predominantly in debt and money market instruments maturing in one business day
- Investments primarily in TREPS/ Repo/ Reverse Repo/Overnight maturity papers
- Endeavor to offer high liquidity, low risk & minimal volatility
- Scheme returns are largely in line with the overnight call/money market rates
Nil
SWP/Redeem/SIP/STRIP/Switch
Relatively Low interest rate risk and Relatively Low Credit Risk
Overnight Securities (including Triparty Repo on Government Securities or treasury bill & Repo): 100% (Low) The scheme will invest in Triparty Repo on Government Securities or treasury bill, market repo & securities having a maturity of one day. Here one day refers to one business day.
The investment objective of the scheme is to generate reasonable income, with low risk and high level of liquidity from a portfolio of overnight securities having a maturity of one day.
However there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee / indicate any returns.
An open-ended debt fund investing primarily in overnight securities
An open ended debt scheme investing in overnight securities. A Relatively Low interest rate risk and Relatively Low Credit Risk
- Invests predominantly in debt and money market instruments with overnight maturity
- The ability of the fund to invest for a single day provides high liquidity
- Probability of capital erosion is very low and interest rate risk is also sought to be minimized as investments are made primarily in securities with 1 day maturity
- Scheme may invest up to 5% portfolio in government securities and/or treasury bills having residual maturity of up to 30 days
This product is suitable for investors who are seeking*:
- Reasonable income over one day with capital preservation. Investment in overnight securities.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
- Investors looking for an alternate avenue to park their surplus fund lying idle
- Investors looking for high level of liquidity for their investments
- Investment horizon: Investors having an investment horizon of a day to a month
UTI Overnight Fund primarily invests in overnight securities viz. TREPS (Triparty Repo Dealing and Settlement), market repo & securities having a maturity of one business day. Investors who want to ensure liquidity and be emergency ready may look at this fund.
UTI Overnight Fund is an open ended debt scheme investing in a portfolio of overnight securities having a maturity of one day.
Investors can simply log in to UTI Mutual Fund 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.
An Overnight 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 Overnight Fund is highly liquid in nature as investments are made in securities having a maturity of one business day
- UTI Overnight Fund does not carry an exit load which makes them a preferred investment avenue for investors looking to make the most of their idle money at home or in a bank.