UTI Mutual Fund launches UTI Corporate Bond Fund

UTI Mutual Fund has launched a new open ended debt scheme called UTI Corporate Bond Fund. The scheme will predominantly invest in highest rated and AA+ rated corporate bonds. The New Fund Offer, which opened on July 23, will close for subscription on August 8. The scheme will be managed by Sudhir Agrawal and Sunil Patil.

"The scheme aims to generate optimal returns with low risk and high liquidity by investing at least 80 per cent in a portfolio of high quality bonds. The scheme will be adopting a buy and hold investment style wherein investments would be made in corporate bonds with a maturity of three to four years to generate accrual income,” said the fund manager, Sudhir Agrawal.

The scheme is open to resident individuals, non-resident Indians, institutions, banks, eligible trusts, financial institution, foreign portfolio investor (FPI) etc. During the NFO period, the units of the scheme will be sold at a face value of Rs 10 per unit.


Asset Allocation

The minimum initial investment in the scheme would be Rs 5,000 and additional purchase amount would be Rs 1,000. The scheme will offer subscription and redemption of units at applicable NAV on every business day on an ongoing basis, within five business days from the date of allotment. There will be no entry or exit load in the scheme. The scheme is benchmarked against CRISIL Corporate Bond Composite Index.