NFO: Here’s all you need to know about UTI Fixed Term Income Fund Series – XXVI – IX (1113 days)

By: | Published: April 3, 2017 6:08 PM

UTI Fixed Term Income Fund Series – XXVI – IX (1113 days) is a close-ended income scheme having moderate risk, that is neither high nor too low. Investors who can slightly take risk can invest in such kind of fund. The scheme would invest in a diversified portfolio of various rated papers, i.e., corporate bonds, debentures, etc, which mature on or before the date of maturity of the scheme.

The locked-in portfolio would nearly eliminate interest rate risks providing a potential opportunity for better returns.

UTI Fixed Term Income Fund Series – XXVI – IX (1113 days) is a close-ended income scheme having moderate risk, that is neither high nor too low. Investors who can slightly take risk can invest in such kind of fund. The scheme would invest in a diversified portfolio of various rated papers, i.e., corporate bonds, debentures, etc, which mature on or before the date of maturity of the scheme.

As the scheme is a close-ended fund with no regular inflows and as redemption is not allowed till maturity, the portfolio normally constructed in the beginning for the tenure of the scheme would have low portfolio turnover. The locked-in portfolio would nearly eliminate interest rate risks providing a potential opportunity for better returns.

Here are a few things one should know before making an investment in such an NFO.

New Fund Offer time period

NFO opened on March 29, 2017, and closes on April 10, 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, the scheme does not guarantee or indicate any return. There is no assurance that the fund’s objective will be achieved.

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Asset Allocation

Under normal conditions, the asset allocation under the scheme will be as below


​The scheme will invest only in a portfolio of fixed-income securities that mature on or before the date of maturity of the scheme. However, the cumulative gross exposure through debt and derivative positions will not exceed 100 percent of the net assets of the scheme. The scheme will not invest in securitised debt, foreign securities and will not engage in Securities Lending. The scheme will also not engage in short selling, credit default swaps. Moreover, the scheme does not intend to invest in repo in corporate debt securities.

Liquidity/redemption process of the Scheme

The redemption proceeds shall be despatched to the unitholders within 10 business days from the date of maturity of the scheme. In the case of funds received through cash payment, the redemption proceeds shall be remitted only to the designated bank account. However, if anybody wants to redeem money in between, then in such a case the units of the scheme will be listed on a National Stock Exchange, after the closure of the New Fund Offer period. Investors will be able to enter and exit the scheme through transactions in the secondary market within five business days of allotment.

Load Structure

Entry load is Nil, redemption is also not permitted before maturity. Investors should note that at the maturity date / final redemption date of the scheme, the units under the scheme will be redeemed at the Applicable NAV.

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Minimum Application Charges

Minimum subscription amount for an investor to invest in this scheme is Rs 5000, which can be increased in multiples of Rs 10 under all the plans and options.

Scheme’s Benchmark

CRISIL Composite Bond Index is the benchmark for UTI Fixed Term Income Fund – Series XXVI – IX (1113 days).

It is, however, to be noted that one should consult one’s financial adviser before investing in such a fund. Moreover, one must link one’s investments to one’s financial goals of life.

(Source: nseindia.com )

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