UTI’s short term income fund is primarily an accrual-oriented income fund with the flexibility to take advantage of the yield movement at the shorter end (1 to 3-year segment) of the curve.
The fund predominantly invests in high quality CDs, CPs and corporate bonds with tactical exposure to sovereign instruments like G-Secs, SDLs, etc. to actively manage duration.
The fund manager takes tactical exposure to G-Secs based on evolving market conditions and/or economic outlook.
According to a communication to the press from UTI, in the current monetary policy scenario, investors may look at UTI Short Term Income Fund which is upositioned to capture yield movement in 1 to 3 year segment.
This fund can be part of investor’s core fixed income portfolio for an investment horizon of 12 months and above.