UTI
Credit Risk Fund : Generate relatively superior risk adjusted
returns…!
UTI Credit Risk Fund attempts
to provide reasonable income by investing in high income accruing securities,
along with the possibility of capital appreciation through active portfolio
management to gain from change in credit/interest spreads. The fund has a high
income accrual portfolio with maturity between 2 to 4 years which has an
ability to generate relatively superior risk adjusted returns.
Mr. Ritesh Nambiar, Fund
Manager, UTI AMC said, “RBI appointed a new governor who is perceived to have a
dovish interest rate outlook. This coupled with lowering of crude oil prices
have softened the yields. However, the sustainability of downward trajectory
would be dependent on various factors viz. crude oil price movement, inflation
prints, outcome of election etc. We believe there would be populist measures in
coming months which might have an impact on the fiscal. Whether the government
is able to stick to the path of fiscal prudence or not would be key in driving
the yields in near term. We expect shallow rate cuts by RBI but it would not be
start of an easing cycle. In such an environment, we
believe funds having a combination of higher income accrual and short to medium
term duration like UTI Credit Risk Fund would provide a good investment
opportunity for 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 8.46% against benchmark
returns of 8.30% since inception (as December 31, 2018)
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