NFO: Here’s all you need to know about UTI Fixed Term Income Fund – Series XXVI – XIV (1105 days)

UTI Fixed Term Income Fund – Series XXVI – XIV (1105 days) is a close-ended income scheme having moderate risk. Investors who want regular income for fixed term and also want to invest their money in debt fund, money market instrument or government securities may go for this fund.

Here are a few things to know before making any investment in this scheme.

New Fund Offer time period

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The NFO opened on May 9, 2017, and closes on May 23, 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/indicate any return. There is no assurance that the fund’s objective will be achieved.

Asset Allocation

Under normal circumstances, the asset allocation under the schemes will be as below:

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The cumulative gross exposure through debt and derivative positions shall not exceed 100% 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 not engage in short selling, credit default swaps. The scheme does not intend to invest in repo in corporate debt securities.

Liquidity of the Scheme

The units of the scheme will be listed on the National Stock Exchange (NSE), 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 not permitted before maturity. On the maturity date / final redemption date of the scheme, the units under the scheme will be redeemed at the applicable NAV.

Minimum Application Charges

The minimum amount of investment is Rs 5000, which can be increased in multiples of Rs 10 under all the plans/options.

Scheme’s Benchmark

CRISIL Composite Bond Index is the benchmark for UTI Fixed Term Income Fund – Series XXVI – XIV (1105 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: amfiinida website)