UTI Corporate Bond Fund - Core debt portfolio for the medium term

UTI Corporate Bond Fund

UTI Corporate Bond Fund attempts to capture the ongoing yields by following a ‘buy and hold’ investment style to generate accrual income. The scheme would invest high credit quality instruments (min. 80% investment in AAA & AA+ rated instruments) with a maturity of 3 to 4 years to lock in the prevailing yields.

Mr. Amandeep Chopra, Head-Fixed Income, UTI AMC said, “RBI reduced the inflation range on its monetary policy and mentioned that if the upside risk on inflation does not pan out they would look at a taking an appropriate rate action. This indicated that there is room for rate cut going ahead. Additionally, the mention of OMO continuity and increase in frequency and quantum of purchases until March 19 (if need be) had a positive impact on yields. We believe that with no change in stance the possibility of rate hike is ruled out in near term and there is a possibility of change in stance in the next policy will continue to monitor the environment. 

However, impact of OPEC’s production cut, result of State election and other macro-economic factors on yields would be continuously monitored by RBI and the market participants to ascertain the possibility of rate cut. In such a scenario, fund like UTI Corporate Bond Fund having the ability to capture the prevailing yield provides a good investment opportunity.”

Investors who want to build their core debt portfolio for the medium term (3 years+) investment horizon may look to invest this fund.


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