The New Fund Offer (NFO) is open for subscription and will close on March 15.
The scheme aims to generate optimal returns with adequate liquidity by investing in a portfolio of debt and money market instruments.
The minimum application amount is Rs 5,000 and in multiples of Re 1 thereafter. During the NFO period, the units of the scheme will be sold at face value – that is, Rs 10 per unit.
The scheme will offer Regular Plan and Direct Plan – with Growth and IDCW options. The scheme will be benchmarked against CRISIL Long Duration Fund AIII Index.
Vetri Subramaniam, CIO, UTI AMC, said, “It’s important to diversify your investment portfolio by investing in a mix of equity and fixed income funds. This will help you mitigate risk and reduce portfolio volatility. Long duration fixed income funds are an appropriate option for investors with long term financial goals, such as saving for retirement or funding child’s education, etc. These funds can provide a relatively stable source of income, compounding and potential capital appreciation over a longer investment horizon. Additionally, investors in long duration debt funds can also benefit from tax-efficient withdrawals after a three year holding period. Capital Gains in fixed income funds held for more than 3 years are considered as long term capital gains and enjoy indexation benefit. This results in lower tax liability making them attractive for those seeking to maximize their after-tax returns.”
The scheme will be suitable for investors with long-term investment goals, investors who have a low-risk appetite for credit exposures, seeking a high-quality portfolio and tax-efficient reasonable returns.
