UTI MF launches UTI Investment Bond Fund - Plan 1

MUMBAI: UTI Mutual Fund today launched UTI Investment Bond Fund - Plan 1, a close-ended income scheme.

The new fund offer (NFO) opens on November 26 and closes on December 31 and units can be purchased only during the NFO period, a press release issued here stated.

The scheme comprises of four series of Plan 60 (60 months).

Presently, UTI Mutual Fund is launching Plan 1, it said.

The fund aims to generate regular returns by investing in a portfolio of fixed income securities. Each plan will invest in a distinct portfolio of securities.

Deb Bhattacharya, fund manager of Plan 1, said that "UTI Investment Bond Fund - Plan 1 provides an attractive investment opportunity for risk-averse investors looking at a marginal equity exposure."

"The Plan will try to insulate investors' capital from adverse equity market movements. Equity would generate returns while the debt component would endeavour to preserve capital," he added.

While there would be no entry load, an early exit charge equivalent to the unamortised NFO expenses will be recovered from the investor in case of redemption before the expiry of 60 months from the date of allotment.