Investors who want to build their core debt portfolio for the medium term...! - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Wednesday, February 13, 2019

Investors who want to build their 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.SudhirAgrawal, Fund Manager, UTI AMC said, “In the recent monetary policy, MPC announced a 25 bps reduction in Repo with a change in stance to ‘neutral’. While most of the market participants had anticipated a change in stance but not a rate cut. The inflation projection was also revised downward by nearly 60- 80 bps indicating a dovish outlook on inflation. These measures led to expectations of probable further rate easing ahead. However, the higher than anticipated g-sec borrowing announcement in budget is likely to put upward pressure on yields. We believe going forward the yield curve may steepen with the shorter end of the curve falling due to the dovish undertone and long end of the curve remaining sticky on fiscal concerns and overhang of huge supply of Central and State government bonds.Insuch a scenario, fundlike 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.
 




Investors who want to build their core debt portfolio for the medium term...! Reviewed by S Chitra on February 13, 2019 Rating: 5 UTI Corporate Bond Fund UTI Corporate Bond Fund attempts to capture the ongoing yields by following a ‘buy and hold’ investment style...

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