Reasonable Income from UTI Credit Risk Fund

MUMBAI:
UTI Credit Risk Fund (formerly Known as UTI Income Opportunities 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.
Amandeep Chopra, Head of Fixed Income, UTI AMC said, “RBI hiked the repo rate by 25 bps for the second time in a row. Despite a rate hike, markets reacted positively as RBI removed near term uncertainty which led to expectations of no further rate action over the next few months. We expect markets to trade cautiously as heavy government borrowing kicks in from October 2018. Debt markets are likely to follow the movement in crude oil prices, trajectory of US treasury yields and USD movement. On domestic front, the distribution of monsoon, incremental impact of MSP prices on inflation, pressure on INR along with the release of RBI minutes would determine the yield movement going ahead. 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 8.62% against benchmark returns of 8.25% since inception (as June 30, 2018)