UTI Capital Protection Oriented Scheme Series IX-I (1467 Days) is a close-ended capital protection-oriented income fund. The principal will be held at moderately lower risk. Therefore investors who are conservative in nature can invest their money in such kind of funds.
Here are a few things that one should know before investing in this fund:
New Fund Offer time period
The NFO opened on April 12, 2017, and closes on April 26, 2017.
The investment objective of the scheme is to endeavor to protect the capital by investing in high quality fixed income securities as the primary objective and generate capital appreciation by investing in equity and equity-related instruments as secondary objective.
However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any return. The Scheme is “oriented towards protection of capital” and not “with guaranteed returns”. Further, the orientation towards protection of the capital originates from the portfolio structure of the scheme and not from any bank guarantee, insurance cover etc.
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In the particular fund, 70% to 100% of investments will be done in debt and money market securities and remaining up to 30% will be done in equity and equity-related instruments.
The final Asset Allocation at the time of launch of the plan would be as per the ICRA rating letter. The plan does not intend to invest in Securitized Debt (including Pass Through Certificates), Debt Derivatives, Repo/Reverse Repo in corporate debt securities, overseas/ foreign securities.
Further, the Plan does not intend to engage in stock and securities lending and short selling or participate in credit default swap transactions. The Plan is proposed to make investments in debt securities maturing on or before the maturity of the Plan.
Investment in Equity Derivative instruments will not exceed 30% of the net assets of the plan. The plan will only invest in exchange traded options and futures.
Liquidity of the Scheme
Redemption will be done on maturity date at NAV based price of the Plan. As per SEBI guidelines, the AMC / Mutual Fund shall not redeem the units of the Plan before the date of maturity.
The units of the Plan will be listed on the National Stock Exchange after the closure of the New Fund Offer period. Investors will be able to enter and exit the Plan through transactions in the secondary market within five business days of allotment.
As per the regulations, AMC shall not charge any exit load in this plan and also no entry load will be charged by the plan to the investor.
Minimum Application Charges
The minimum amount of investment under Regular Sub Plan and Direct Sub Plan is Rs 5,000 and in multiples of Rs 1 thereafter without any upper limit.
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CRISIL MIP Blended Index is the benchmark.
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.