UTI Mutual Fund launches Banking & PSU Debt Fund

MUMBAI: UTI Mutual Fund (UTI) on Monday announced Banking & PSU Debt Fund, an open ended income scheme with no assured returns.

The scheme closes on January 30. It will re-open for continuous purchase and redemption from February 6, the company said.

The investment objective of the scheme is to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of predominantly debt and money market securities by Banks and Public Sector Undertakings.

Sudhir Agarwal, Fund Manager, said, "The scheme will primarily invest in securities rated AAA/A1+. The portfolio will be actively managed with relative lower risk and volatility and will capitalise on the spreads available at the shorter end of the yield curve. Portfolio duration is likely to be maintained between 12 to 18 months."