UTI Dynamic Bond Fund - Generated a return of 10.13% since inception
UTI Dynamic Bond Fund
UTI Dynamic Bond Fund is an all weather fund that has the
flexibility to counter a dynamic environment by actively managing the portfolio
in line with the evolving interest rate scenario.
The fund is being managed
dynamically with active and more frequent duration calls in order to generate
alpha in line with the evolving interest rate scenario. It has the ability to reduce
maturity when interest rates are rising, thereby preserving capital and can
generate the attractive returns of an Income Fund when interest rates are
declining.
Mr. Amandeep Chopra, Head of Fixed Income, UTI AMC said, “We
are right now at a juncture where there is a lot of uncertainty around us. We
have seen best of inflation behind us, sequentially inflation should trend up
which would be a cause of concern. We don’t think October rate cut is a given,
but at the same time we are also not saying that another rate cut won’t happen
— the timing of such an event is very uncertain. Globally, we are seeing
reversal of central banks’ stance, either they are looking to shrink balance
sheet or they want to continue/initiate rate hike cycle. Domestically,
demonetization and GST are playing out and we still have to look at their impact.
So the RBI policy is grappling with these just as additional data will be
critical for some clarity. Post-October, there would be much more clarity, the
September Fed policy will also be behind us. So, right now, it is just a
wait-and-watch stand. In such a scenario, funds having the ability and
flexibility to tap opportunities across the yield curve, like UTI Dynamic Bond
Fund would benefit the investors.”
This fund can form part of an investor’s strategic debt
allocation to build a balanced portfolio. The fund has outperformed the
benchmark, CRISIL Composite Bond Fund Index across time horizons. The fund has
generated a return of 10.13 against benchmark returns of 8.72% since inception (as June 30, 2017)
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