UTI Mutual Fund Launches Income Fund: NFO Closes on February 27, 2023. Check details here

New NFO Alert! UTI mutual fund's NFO for its new Fixed Term Income Fund is open for subscription till February 27, 2023. Learn all you wanted to know.

Income Fund Open till February 27

New UTI MF Income Fund Open till February 27, 2023: Top 12 FAQs Answered!

FAQ #1: What is the New UTI MF Income Fund NFO?

UTI Mutual Fund is launching its new close-ended income-fund. The name of this fund is UTI Fixed-Term Income-Fund-Series XXXVI-I (1574-Days). This income fund invests in the constituents of the CRISIL-Medium-to-Long-Term Debt-Index. 

FAQ #2: What are the Opening and Closing Dates of the New UTI Income Fund NFO?

NFO of this new UTI fund is currently open for subscription by the public.

  • Opening Date of NFO: February 21, 2023
  • Closing Date of the NFO: February 27, 2023

FAQ #3: What is an NFO?

NFO stands for New Fund Offer.

  • An NFO is launched by an Asset Management Company (AMC). It is done when the AMC wants to launch a new mutual fund (MF) scheme.
  • The public can buy units of the new MF scheme and invest for the first time.

FAQ #4: Which Type of MF Scheme is this?

This UTI scheme is a close-ended income-fund. This debt fund instrument aims to provide you with a return that commensurates CRISIL Medium-to-Long-Term Debt Index's performance. Just like any other debt fund, it doesn't guarantee that the scheme's investment objective will be realised. 

FAQ #5: What is the Objective of the UTI Fixed-Term Income-Fund Scheme?

The main objective of this scheme is to get ROI (Return On Investment) by investing in:

  • A wide range of securities that provide fixed-income.

The investment is made:

  • Either on the portfolio securities’ maturity date or
  • Before the portfolio securities’ maturity date

A close-ended income-fund is a debt scheme that contains relatively:

  • High rate of interest risk
  • Low risk of credit

Though the UTI scheme invests in a portfolio of fixed-income securities, it doesn't indicate or guarantee any return. The scheme doesn't provide assurance that the objective of the scheme will be achieved.

FAQ #6: How can you Invest in the New UTI Fixed Term Income Fund?

The minimum investment of this scheme is Rs. 5,000. After the minimum investment amount of Rs. 5,000, you must invest in Re 1 multiples. Every unit offered by UTI Fixed-Term Income-Fund is Rs. 10 each. 

You can invest either through a Direct Plan or a Regular Plan. There are two options available for investment in both plans:

  • Growth Option 
  • Payout of IDCW option (It provides you with both the option of capital withdrawal and income distribution payout)

If you don’t select any option while applying for this UTI scheme, the growth option is processed by default. 

FAQ #7: What is the Asset Allocation under the New UTI Fixed Term Income Fund Scheme?

The asset allocation of UTI Fixed-Term Income-Fund under normal circumstances are as follows:

Debt Instruments (Low-to-Medium risk profile): 80-100% asset allocation
Money Market Instruments (Low-to-Medium risk profile): 0-20% asset allocation
FAQ #8: Is there any Mutual Fund Similar to this UTI Fund Scheme?

Yes, many similar fixed-term income funds were launched earlier. Some of the most popular ones are:

  1. HDFC FMP 1846D August-2013 (1) (27): 14.24% ROI in 3 years
  2. SBI Debt-Fund Series-C - 49: 8.61% ROI in 3 years
  3. ICICI-Prudential FMP - Series-85 - 10-Years Plan-I: 7.99% ROI in 3 years
  4. IDFC Fixed-Term-Plan - Series 179: 7.97% ROI in 3 years
  5. Nippon-India Fixed-Horizon-Fund XLI - Series-8: 7.92% ROI in 3-years

FAQ #9: How can you Redeem from the scheme?

You can only redeem from this new debt fund after maturity. The UTI scheme will end on the maturity date. If you are an investor in the scheme, you can:

  • Redeem the outstanding units, and then the proceeds will be paid to you.
  • Switch to UTI Mutual Fund's existing fixed-term income-fund for selling on the maturity date
  • Switch to UTI Mutual Fund's existing open-ended scheme for selling on the maturity date.

Suppose you don't choose any options mentioned above. In that case, the outstanding units will be compulsorily redeemed on the date of final redemption or date of maturity as per the applicable Net Asset Value (NAV). The AMC will not charge any exit load.

FAQ #10: Do you have to pay any Entry Load or Exit Load?

No entry load or exit load will be charged to your earnings.

FAQ #11: Who is the Fund Manager of UTI Scheme?

The scheme’s fund manager is Sunil Patil.

FAQ #12: What is the Inherent Risk of the UTI Fixed Term Income Fund Scheme?

It is a moderate-risk scheme. However, you should consult your financial advisor before applying.

New UTI MF Income Fund Open till February 27, 2023: Top 12 FAQs Answered!

FAQ #1: What is the New UTI MF Income Fund NFO?

UTI Mutual Fund is launching its new close-ended income-fund. The name of this fund is UTI Fixed-Term Income-Fund-Series XXXVI-I (1574-Days). This income fund invests in the constituents of the CRISIL-Medium-to-Long-Term Debt-Index. 

FAQ #2: What are the Opening and Closing Dates of the New UTI Income Fund NFO?

NFO of this new UTI fund is currently open for subscription by the public.

  • Opening Date of NFO: February 21, 2023
  • Closing Date of the NFO: February 27, 2023

FAQ #3: What is an NFO?

NFO stands for New Fund Offer.

  • An NFO is launched by an Asset Management Company (AMC). It is done when the AMC wants to launch a new mutual fund (MF) scheme.
  • The public can buy units of the new MF scheme and invest for the first time.

FAQ #4: Which Type of MF Scheme is this?

This UTI scheme is a close-ended income-fund. This debt fund instrument aims to provide you with a return that commensurates CRISIL Medium-to-Long-Term Debt Index's performance. Just like any other debt fund, it doesn't guarantee that the scheme's investment objective will be realised. 

FAQ #5: What is the Objective of the UTI Fixed-Term Income-Fund Scheme?

The main objective of this scheme is to get ROI (Return On Investment) by investing in:

  • A wide range of securities that provide fixed-income.

The investment is made:

  • Either on the portfolio securities’ maturity date or
  • Before the portfolio securities’ maturity date

A close-ended income-fund is a debt scheme that contains relatively:

  • High rate of interest risk
  • Low risk of credit

Though the UTI scheme invests in a portfolio of fixed-income securities, it doesn't indicate or guarantee any return. The scheme doesn't provide assurance that the objective of the scheme will be achieved.

FAQ #6: How can you Invest in the New UTI Fixed Term Income Fund?

The minimum investment of this scheme is Rs. 5,000. After the minimum investment amount of Rs. 5,000, you must invest in Re 1 multiples. Every unit offered by UTI Fixed-Term Income-Fund is Rs. 10 each. 

You can invest either through a Direct Plan or a Regular Plan. There are two options available for investment in both plans:

  • Growth Option 
  • Payout of IDCW option (It provides you with both the option of capital withdrawal and income distribution payout)

If you don’t select any option while applying for this UTI scheme, the growth option is processed by default. 

FAQ #7: What is the Asset Allocation under the New UTI Fixed Term Income Fund Scheme?

The asset allocation of UTI Fixed-Term Income-Fund under normal circumstances are as follows:

Debt Instruments (Low-to-Medium risk profile): 80-100% asset allocation
Money Market Instruments (Low-to-Medium risk profile): 0-20% asset allocation
FAQ #8: Is there any Mutual Fund Similar to this UTI Fund Scheme?

Yes, many similar fixed-term income funds were launched earlier. Some of the most popular ones are:

  1. HDFC FMP 1846D August-2013 (1) (27): 14.24% ROI in 3 years
  2. SBI Debt-Fund Series-C - 49: 8.61% ROI in 3 years
  3. ICICI-Prudential FMP - Series-85 - 10-Years Plan-I: 7.99% ROI in 3 years
  4. IDFC Fixed-Term-Plan - Series 179: 7.97% ROI in 3 years
  5. Nippon-India Fixed-Horizon-Fund XLI - Series-8: 7.92% ROI in 3-years

FAQ #9: How can you Redeem from the scheme?

You can only redeem from this new debt fund after maturity. The UTI scheme will end on the maturity date. If you are an investor in the scheme, you can:

  • Redeem the outstanding units, and then the proceeds will be paid to you.
  • Switch to UTI Mutual Fund's existing fixed-term income-fund for selling on the maturity date
  • Switch to UTI Mutual Fund's existing open-ended scheme for selling on the maturity date.

Suppose you don't choose any options mentioned above. In that case, the outstanding units will be compulsorily redeemed on the date of final redemption or date of maturity as per the applicable Net Asset Value (NAV). The AMC will not charge any exit load.

FAQ #10: Do you have to pay any Entry Load or Exit Load?

No entry load or exit load will be charged to your earnings.

FAQ #11: Who is the Fund Manager of UTI Scheme?

The scheme’s fund manager is Sunil Patil.

FAQ #12: What is the Inherent Risk of the UTI Fixed Term Income Fund Scheme?

It is a moderate-risk scheme. However, you should consult your financial advisor before applying.

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