UTI – Fixed Term Income Fund Series – XXVI – VII (1140 days) is a close-ended income scheme. Investors who want regular income for a fixed term by investing their money in debt, money market or G-securities can invest in such kind of funds. The risk associated with the fund is moderate, that is, it is neither too high nor too low.

Here are a few things you should know before investing in this fund:

New fund offer time period
New Fund Offer opened on March 16, 2017 and will close on March 27, 2017.

Investment Objective
The scheme aims to generate returns by investing in a portfolio of fixed income securities maturing on or before the date of maturity of the scheme. However, one must know that the scheme does not guarantee or indicate any return. There is no assurance that the fund’s objective will be achieved.

You may also watch:

Asset Allocation
It is defined as percent to NAV and under normal conditions, the asset allocation under the schemes will be as stated below:

Liquidity
During the NFO, the units of the scheme will be sold at the face value of Rs 10 per unit. Redemption will be done on maturity date at NAV based price of the scheme.

It is to be noted that as per the SEBI guidelines, the AMC/Mutual Fund shall not redeem the units of the scheme before the date of maturity. The units of the scheme will get listed on National Stock Exchange, after the closure of the NFO period. Investors will be able to enter and exit the scheme through transactions in the secondary market within five business days of allotment.

Plan Option
Investors can select either of the options while investing in this fund as per their comfort.

  • Growth option
  • Quarterly dividend option with payout facility
  • Flexi dividend option with payout facility
  • Annual dividend option with payout facility
  • Maturity dividend option with payout facility

You may also watch:

Load structure
Entry load is nil, Redemption is not permitted before the maturity. On the maturity date or the final redemption date of the scheme, the units under the scheme will be redeemed at the applicable NAV.

Minimum application amount
Minimum amount of investment is Rs 5000 and in multiples of Rs 10 under all the plans/options.

Benchmark
CRISIL composite bond index is the benchmark for fund thereon.

Make sure that you are linking your investment with a particular long-term financial goal under the proper guidance of a financial adviser and it is also required to take suggestions and review your financial plan from time to time if doing any investing in such kind of fund.

(Source input: utimf.com)