Ideal time to shift to accrual oriented funds..! - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Thursday, May 10, 2018

Ideal time to shift to accrual oriented funds..!


Ideal time to shift to accrual oriented funds
At a time when rate cut cycle is behind, investors are looking towards short term income funds to gain from high accrual coupled with income stability due to lower duration.
One such fund is UTI Short Term Income Fund which aims to generate reasonable returns with low risk and high liquidity from a portfolio of money market securities and high quality of debt with an average maturity cap of 4 years. The fund attaches importance to high credit quality and portfolio diversification.
Sudhir Agrawal, fund manager of UTI Short Term Income Fund says, “With the expectations of CPI inflation stabilizing above RBI's target of 4% in next 6-12 months, RBI may be on an extended pause in near future. Further, due to recent increase in commodities prices along with expected higher increase in minimum support price for farmers may result in further upside risk to the CPI in second half of fiscal year 2018-19. In such a scenario, investors should start shifting focus to short term income funds as these funds offer high accrual along with lower volatility. We have been recommending investors to look at our short term income fund with an investment horizon of 1 to 3 years.”

UTI Short Term Income Fund has been consistently outperforming its benchmark CRISIL Short-Term Bond Fund Index. Fund has given a return of 8.81% against its benchmark return of 7.78% since inception (as on March 31, 2018).




Ideal time to shift to accrual oriented funds..! Reviewed by S. Chitra on May 10, 2018 Rating: 5 Ideal time to shift to accrual oriented funds At a time when rate cut cycle is behind, investors are looking towards short term income f...

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