UTI
Short Term Income Fund - Correct time to shift to accrual oriented funds..!
After the start of
rate hike cycle by RBI, 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 a average maturity cap of 4 years. The fund
attaches importance to high credit quality and portfolio diversification.
Mr. Sudhir
Agrawal, Fund Manager, UTI Short
Term Income Fund says, “With the expectations of CPI inflation moving towards 5% in first
half of next fiscal year, RBI may be under pressure to hike rates further to
bring inflation closer to its target. Further, increase in cost of imports due
to depreciation of rupee versus dollar may result in upside risk to the CPI in coming
few quarters. 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 8.57% against its benchmark return of 7.56% since inception(as on September
30, 2018).
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