Ideal
time to shift to accrual oriented funds
At
a time when rate cut cycle is behind, investors are looking towards
short term income funds to gain from high accrual coupled with income
stability due to lower duration.
One
such fund is UTI
Short Term Income Fund which
aims to generate
reasonable returns with low risk and high liquidity from a portfolio
of money market securities and high quality of debt with an average
maturity cap of 4 years. The fund attaches importance to high credit
quality and portfolio diversification.
Sudhir
Agrawal, fund manager of
UTI Short Term
Income Fund says, “With
the expectations of CPI inflation stabilizing above RBI's target of
4% in next 6-12 months, RBI may be on an extended pause in near
future. Further, due to recent increase in commodities prices along
with expected higher increase in minimum support price for farmers
may result in further upside risk to the CPI in second half of fiscal
year 2018-19. In such a scenario, investors should start shifting
focus to short term income funds as these funds offer high accrual
along with lower volatility. We have been recommending investors to
look at our short term income fund with an investment horizon of 1 to
3 years.”
UTI
Short Term Income Fund has been consistently outperforming its
benchmark CRISIL Short-Term Bond Fund Index. Fund has given a return
of 8.81%
against its benchmark return of 7.78% since inception (as on March
31, 2018).
No comments:
Post a Comment