UTI Mutual Fund launches Gilt Fund with 10- year constant duration

UTI Mutual Fund has launched UTI Gilt Fund with 10-year constant duration, an open-ended debt scheme investing in government securities having a constant maturity of 10 years. The fund has a relatively high-interest rate risk and relatively low credit risk. The New Fund Offer is open and will close on July 26.

According to the press release, the scheme’s investment objective is to generate optimal returns with high liquidity by investing in a portfolio of government securities such that the weighted average portfolio maturity is around 10 years. However, there can be no assurance that the Scheme’s investment objective will be achieved. The Scheme does not guarantee/ indicate any returns.

“Aiming to offer new investment opportunities via varied products, our latest fund launch, UTI Gilt Fund with 10 year Constant Duration, is a suitable offering for strategic allocation in a duration fund with sovereign exposures in the UTI Mutual Fund product suite. While diversified allocation to different asset classes like equity, fixed income & gold has become an adage for investors, sovereign allocation within fixed income can offer a better value proposition by minimising credit risk, providing high liquidity while maintaining tax efficiency needs to be given more consideration,” said Anurag Mittal, EVP & Deputy Head of Fixed Income, UTI AMC Ltd.


Investors with long-term investment goals, low-risk appetite for credit exposures and those who are comfortable with interest rate volatility can look at this scheme. The minimum application amount is Rs. 5,000 and in multiples of Re 1 thereafter.