Three benefits in one Investment
UTI Mutual Fund (UTI) launches a new open ended scheme – “UTI Equity Savings Fund” which aims to leverage growth from equity and balance out risk by investing in arbitrage and debt instruments. The New Fund Offer opens on August 10, 2018 and will close on August 24, 2018.
The investment objective of the scheme is to provide capital appreciation and income distribution to the investors using arbitrage opportunities, investment in equity /equity related instruments and debt / money market instruments. However there is no assurance or guarantee that the investment objective of the scheme will be achieved.
Mr. V Srivatsa is the Fund Manager for Equity portfolio and Mr. Sunil Patil is for the Debt portfolio of the scheme.
On the occasion, Mr. Srivatsa said, “The equity portion, of the scheme would follow a multi cap approach with a large cap bias. The scheme will pursue top down approach for sector allocation while for stock selection, discount to their intrinsic value or their cheapness relative to their market aggregates would be the key criterion. The scheme will use Key Metrics such as EV/EBITDA, P/E, Book Value or Asset Value as key filters. For the debt portion, the scheme will largely follow an accrual strategy with focus on good credit quality and low duration. There could be tactical allocation to G sec as well. Arbitrage strategies would largely focus on those opportunities which offer the potential spread arising out of mispricing in cash & future market.”
Suraj Kaeley, Group President (Sales and Marketing), UTI AMC said, “UTI Equity Savings Fund integrates three different investment segments i.e. Equity, Equity Arbitrage and Debt with an endeavour to enhance the portfolio’s return and decrease the portfolio volatility. Equity gives an opportunity to unlock growth opportunities while arbitrage & debt portion moderates volatility, brings stability and facilitates income for the scheme. The scheme has tax efficiency as applicable to an equity oriented fund. These attributes make the scheme a judicious choice for investors.”
Salient Features of UTI Equity Savings Fund
The scheme is open to resident individuals, non-resident Indians, Institutions, Banks, eligible trusts, financial institution, Foreign Portfolio Investor (FPI) etc.
New Fund Offer Price:
During the NFO period, the units of the scheme will be sold at face value i.e. Rs.10/-per unit
|Instruments|| Indicative Allocation (% of total assets)
|Equity and equity related instruments of which
Cash future arbitrage opportunities
Net Long equity position
|Debt and Money Market Securities (including securitized debt & margin for derivatives)*||
|Low to Medium|
|Units issued by REITs & InvITs||
|Medium to High|
*The fund may invest up to 50% of its debt portfolio in securitized debt
Minimum Application Amount:
Minimum initial investment is Rs.5,000/- and in multiples Rs.1/- thereafter
Additional Purchase amount Rs.1000/- and in multiples of Rs.1/- without any upper limit
The scheme will offer subscription and redemption of units at applicable NAV on every business day on an ongoing basis, within 5 business days from the date of allotment
|Entry Load (As % of NAV)||Exit Load (As % NAV)|
|NIL (Not applicable as per SEBI guidelines)||< 1 Year – 1%|
|>= 1 year- NIL|
Plans and Options offered:
The scheme offers 2 plans viz. Regular Plan and Direct Plan with growth and dividend options under both the plans.
Benchmark Index: 40% CRISIL Liquid Fund Index, 30% CRISIL Composite Bond Fund Index
and 30% S&P BSE 200